401K limits are separated into 2 limits, the second being a bit more obscure.
There is the employee limit of ~19,500 which is reviewed by the IRS every year, and there is the employer limit which is an additional number where the total of both is reviewed by IRS every year. It is currently ~$56,000 or so
Many employers only barely flirt with this number, offering a few thousands here and there in various schemes.
Any software engineer doing a little contracting can pump $30,000 into their own self directed 401k acting as their own employer. You can have multiple 401ks as long as the total limit doesn't exceed that super max.
To be fair, the max you can put into a solo 401k on the employer side is limited to 20% of your net annual profit (business income minus half of self-employment tax). So in order to put in $30,000, you need to have net income of around $160k, which is doable, but more than a little contracting.
For most people here, the mega backdoor Roth is probably more doable, assuming your employer offers the option.
401K limits are separated into 2 limits, the second being a bit more obscure.
There is the employee limit of ~19,500 which is reviewed by the IRS every year, and there is the employer limit which is an additional number where the total of both is reviewed by IRS every year. It is currently ~$56,000 or so
Many employers only barely flirt with this number, offering a few thousands here and there in various schemes.
Any software engineer doing a little contracting can pump $30,000 into their own self directed 401k acting as their own employer. You can have multiple 401ks as long as the total limit doesn't exceed that super max.