Questions tagged [limits]

93 questions
47
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9 answers

How do rich people guarantee the safety of their money, when savings exceed the FDIC limit?

I am curious how a millionaire would guarantee the safety of his money, given that the FDIC only insures up to $250K of an individual's deposits at a bank. If someone had $3 million that they wanted to put into the bank, would they have to open up…
7529
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8 answers

What is the point of ATM transaction limits?

One time, I needed $300 from an ATM, but this particular ATM had a $200/transaction limit. I took $200 dollars out of my checking account and took my card. Literally a few seconds later, I put my card back in and took the other $100 out with no…
Someone
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3 answers

Why is there such disparity of max contribution limits between 401K accounts and regular IRA accounts?

In 2011, regular IRA accounts allowed only $5,000 maximum contribution, while 401K accounts allowed up to $16,500. Why is there such a disparity? Why do tax advantages favor employees of large employers that can afford 401K programs?
Chirag Patel
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18
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1 answer

Is an employer within their rights to limit 401k contributions to 25% of compensation?

I would like to ask a specific question regarding employer limitations on 401k contributions. I have read other posts in the forum that explain that limitations often exist on highly compensated employees depending on the contribution level of…
EMILY
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17
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4 answers

Why are there income limits for Roth IRAs?

Why does the IRS establish a Modified AGI limit for contributions to Roth IRA accounts? I can understand having a limit for Traditional IRA accounts because the government doesn't want to lose out on taxes in a high tax bracket, but Roth IRA…
Daniel
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11
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1 answer

If I have a 401k for a partial year can I still contribute the maximum amount?

I will only have a 401k for part of this year. Am I still able to contribute up to the maximum contribution limit ($18,500 in 2018 this year) even though I only will have the plan for part of the year? I moved from a job that did not have a 401k…
Jordan Brough
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10
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1 answer

Does employer matching count toward the yearly 401(k) limit?

The federal government limits how much I can put into a 401(k) per year. For 2017, I think it's $18,000. Is this just my contributions, or does it count employer matching?
10
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3 answers

Employer limits total 401K contribution to below IRS max. How can we max out our pre-tax contributions?

It looks like my wife's employer is limiting her 401K contributions to 15% of her salary. This means we cannot max out the $17.5K contribution limit set by the IRS. Say her salary is $70K and we are limited to $10.5K – that leaves $7K of pre-tax…
Stevensson
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10
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2 answers

What are the 401(k) and IRA limits for next year?

Are 401(k) and IRA contribution limits increasing next year? If so, what are the new limits?
curious1
10
votes
5 answers

How does one get the 401(k) max contribution of 57K?

My understanding is that the max individual contribution for 2020 is $19,500. If employer match is 100%, that gets us to a total of $39,000. How does one max out the combined employer/employee contribution to $57,000? Where is that extra $18,000…
kylex
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9
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2 answers

Why do tax-advantaged retirement accounts have contribution limits?

Why are there contribution limits for IRAs or 401k? Since I need to make this longer, I tried to look for it. This is the closest thing I've found: Why is there such disparity of max contribution limits between 401K accounts and regular IRA…
John Tseng
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8
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2 answers

What is the difference between a stop order and a stop limit order?

New to this trading thing. I understand that a stop order will buy a stock if it hits the given amount that I want to pay. And I think I understand that a stop limit order will buy the stock if it hits the given price but then goes higher before…
user3164
8
votes
2 answers

Does an Executed Limit Order Imply a Spot Price?

Suppose I place a limit buy order at $10.00 per share for company XYZ on the NYSE or Nasdaq, while the spot price is say $10.25. If my limit order subsequently executes (whether 5 minutes later or 5 days later), does that necessarily imply the spot…
DuckMaestro
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2 answers

Why are excess HSA/IRA/401k/etc contributions allowed?

I accidentally made an excess contribution to my HSA (or my employer or HSA custodian made a mistake, it's still not clear). I know what I need to do to correct it, but I'm curious, why is that allowed to happen in the first place? The HSA custodian…
Ian Dunn
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7
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4 answers

Can I set up a second 401(k) at my LLC?

I have a 401(k) at work. I also have an LLC. Can I start a second 401(k) and contribute an additional $16,500?
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