In the first quarter of each year, Schwab Retirement Plan Services reviews participant total contributions against the 415(c) limit. It is your responsibility to monitor your contributions to ensure you do not exceed the IRS limits. In 2023, the sum of your pretax, Roth 401(k), after-tax, and company contributions cannot exceed the lesser of $66,000 or 100% of your earned compensation, excluding any catch-up contributions. PayPal and Schwab Retirement Plan Services, Inc. Maximum after-tax contribution you’re eligible to makeĮxample is for illustrative purposes only. Maximum PayPal matching contribution you’re eligible to receive Pretax and Roth 401(k) IRS contribution limit The after-tax limit is determined by taking into account IRS limits and the maximum matching contribution an employee is eligible to receive, as shown below: Contribution type The after-tax limit will be adjusted every plan year based on IRS limits. If your after-tax contributions exceed the limit and are stopped, your after-tax contribution election will remain on file with Schwab Retirement Plan Services, and deductions will begin again on January 1 of the following year. The after-tax limit is being put in place by PayPal in an effort to help you stay within IRS contribution limits and avoid refunds. This contribution limit applies to all participants in the 401(k) Plan. This amount includes your pretax and Roth 401(k) contributions, PayPal matching contributions, and your after-tax contributions.Īfter-tax contributions to the 401(k) Plan will be limited to $30,3. This limit, called the 415(c) limit, is $66,000 ($73,500 if you are 50 or older by the end of the 2023 calendar year). The IRS also limits the total amount that can be contributed by you and PayPal each year. For 2023, you can contribute up to $22,500 in pretax and/or Roth 401(k) contributions, plus an additional $7,500 if you are age 50 or older by the end of the calendar year. The IRS has limits on the amount that can be contributed each year, so it's important to understand how much you can contribute. For more information about rollovers, call Schwab’s Plan Hotline. If you have assets in a qualified retirement plan with a previous employer, several options may be available to help you manage an additional retirement account. You can typically change the investment allocations of your existing account balances, change the investment selections for future contributions, or change your beneficiary(ies) as often as you like, though changes may take time to process. Your contributions will be deducted from the next applicable payroll cycle. Once you complete enrollment, you’ll receive a letter by mail or email confirming your selections. You can also enroll by calling the Schwab Plan Hotline at 80. Once you’re enrolled, you can make changes to your investment and savings elections at any time. Through the Schwab Workplace Retirement mobile appĬreate a login using the Register Now button, then log in to your account, and click Confirm Easy Enrollment.Single Sign On (must be connected to the PayPal network).The automatic 4% contribution allows you to take advantage of PayPal’s 4% employer match and takes the guesswork out of investing. When you first sign up, you’ll be enrolled in the Plan at 4% of your eligible compensation and invested in target date retirement funds. With Schwab’s new Easy Enroll feature, you can enroll in the PayPal 401(k) with one click. Dependent Care Flexible Spending Account.Optional Long-Term Care with Life Insurance.
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