For an employee making $70,000, what is the maximum amount that can be contributed per paycheck to a 401k with a $19,500 annual limit?

To determine the maximum amount that can be contributed per paycheck to a 401(k) plan for an employee making $70,000 annually, we need to divide the annual contribution limit by the number of pay periods within the year.

The annual contribution limit for a 401(k) is $19,500. If this employee is paid biweekly, which is common, there are typically 26 pay periods in a year. To find the maximum contribution per paycheck, the calculation will be:

$19,500 (annual limit) ÷ 26 (biweekly pay periods) = $750

Thus, for an employee earning $70,000, the maximum contribution per paycheck to their 401(k) cannot exceed $750 if they choose to maximize their contributions throughout the year. This means that using the full annual limit would result in contributions of this amount every payday, enabling them to reach the maximum without exceeding it.