Timeline for Why is there a cap on 401k contributions?
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| May 7, 2019 at 15:37 | comment | added | MSalters | @CarlWitthoft: Mathematically, you can do whatever you like. But I'm missing the intent of your proposal. It seems to heavily penalize people who have a variable income. In the years where they could afford to fund their 401K, you would forbid it, but you'd allow it.when they don't actually have the money. | |
| May 7, 2019 at 14:24 | comment | added | Carl Witthoft | This is the real reason. There's no reason that the cap couldn't be indexed (in reverse) to income - for example, below 3X poverty line: no limit, above $500,000 annual, zero contribution allowed. | |
| May 7, 2019 at 14:06 | history | answered | KriyanshAurik | CC BY-SA 4.0 |