From my understanding, in 2020, the maximum an employee can contribute to their 401k is $19,500. The total contribution limit for an employee and employer combined in 2020 is $57,000. Now I understand that some companies have matching whether it's 25% or 50% or sometimes 100% but how do people reach that $57,000 limit?

If I contribute the max to my 401k ($19,500), that means to reach the total contribution limit, the company must put in $57,000 - $19,500 = $37,500. Which means the company is almost contributing a 200% match? Is this correct? Do some companies actually match that much?

The other thing I need clarified, is I read that the $19,500 is the max contribution that can be tax exempt. You are allowed to put after tax dollars in your 401k until the limit of $57,000 is reached. Is this true?



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