I'm still a little confused about some aspects of 401K plans, particularly with regards to funding the Roth component.
1. Does funding the Roth prohibit funding the standard 401K plan? Can you fund both in any given year subject to the $18K/$54K max contributions?
I'm picturing the two options as buckets that can filled with a total of $54,000 divided in any manner between the two, but not more than that.
2. Married couples can share in the Solo 401K plan which double the effective contribution limits (assuming there's enough distrbuted income to support it). I recently read that children and other close family members can also participate through "attribution" whereby they're magically also considered 100% owners.
Are the 401K contribution limits for additional family members the same as husband/wife?
3. Bonus question: What is a cash balance plan and when would someone use it?
Thanks!!!
~ Chris
1. Does funding the Roth prohibit funding the standard 401K plan? Can you fund both in any given year subject to the $18K/$54K max contributions?
I'm picturing the two options as buckets that can filled with a total of $54,000 divided in any manner between the two, but not more than that.
2. Married couples can share in the Solo 401K plan which double the effective contribution limits (assuming there's enough distrbuted income to support it). I recently read that children and other close family members can also participate through "attribution" whereby they're magically also considered 100% owners.
Are the 401K contribution limits for additional family members the same as husband/wife?
3. Bonus question: What is a cash balance plan and when would someone use it?
Thanks!!!
~ Chris
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