I am currently able to contribute the maximum employee contribution of $18,000 to my 401k and receive an employer match of $9,000 for a total contribution of $27,000. However, it is my understanding that the maximum total contribution is $53,000, which I could reach if my employer were to contribute an additional $26,000.
Assuming I have the disposable income, would it be worth it to ask my employer to pay me $26,000 less per year in salary and instead contribute an additional $26,000 to my 401k? This would significantly reduce my tax burden but obviously make those funds inaccessible to me until retirement (I am only 24 so retirement is a long way off).
Most people would prefer to keep that cash on hand for an eventual home purchase. I could however use this method to quickly reach a 401k value of $100,000 and then take a loan against my 401k of the maximum $50,000 to help with the purchase of a home. So I would be able to pay for $50,000 of the home with essentially untaxed income, and the interest on that loan would go back into my 401k (albeit taxed twice, once when paid and again when withdrawn in retirement).
Has anybody considered this before?