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What is the 401k catch-up contribution?
After 50yrs employee can difer upto $5000 above the limit(2008 deferral limit 15,500).. .
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Yes, but the contribution limit includes both, i.e., no more than $15,500 total in 2008 plus $5,000 "catch-up" if age 50 or over.
The 401(k) maximums for 2009 was established based on a cost of living adjustment. The 2009 Basic maximum 401K contribution amount is set at $16,500. Catch up contributio…ns allow a maximum of an additional $5,500. Catch up contributions would bring the total to $22,000 but you must be 50 years old and above for the additional allowed contribution amount. The 401k Basic maximum contribution figure is also true for the 403b (used by non-profits and educational institutions). But with the 403b there is also a $40,000 "catch up" provision and a 15-year (same employer) "catch up" provision. These are a bit confusing and are best explained by to the employee by the Third Party Administrator (TPA). In 2009 the entire 403b administration rules changed, too. The basic rules are explained more thoroughly at other sites on the web, but beware of the ever changing nature of these regulations and that postings on the internet are often out-of-date. One site, money-zine, (http://www.money-zine.com/Financial-Planning/Retirement/403b-Contribution-Rules/), which came up on a search on 3-27-09 and it is fairly comprehensive, doesn't include the 401k or 403b Roth after-tax contributions that can now be made or the TPA rules. To get the 'right answer' regarding 403b contribution maximums, please do more than Google searches and reading internet information. The IRS.gov site is helpful and has specific rules, but it really takes a knowledgeable TPA to give the correct information for an individual's specific situation. Per the referenced article another important point to remember regarding your 401k maximum contribution limit - the combined total maximum contribution that you can make each year to ALL 401k plans in which you participate, including standard 401k plans and Roth 401k plans - is the lower of: (1) the maximum percentage contribution limit allowed under each of your employers' plans, or (2) the dollar limits shown in the table above. For example, if your employer's 401k plan allows you to contribute up to a maximum of 10% of your salary, and you earn $50,000, your maximum contribution limit is $5,000, not the $16,500 contribution limit in 2009 that applies only to higher-paid employees
$5,500 for 2009 (the base maximum is $16,500 so the "total catch up" maximum is $22,000 for 2009).
Yes, 2 separate things (accounts). The 401K investing doesn't affect the contribution amount allowed into the IRA. However, if you are contributing to a 401k, you are an …active participant in a retirement plan at work. If your modified Adjusted Gross Income exceeds a certain amount, there are limits on how much you may deduct for a contribution to a traditional IRA. You may still make a full non-deductible contribution, however.
The 415c limit is $49,000. This includes all pretax, aftertax, roth, catch up contributions, and employer match. There's not a maximum specifically for aftertax.
It did not change for 2010. The 402g limit (Pre-tax deferral limit) is $16,500 and the catch up contribution limit is $5,500.
401k's are not tax-deductible in the normal sense of the word. However, since normal 401k contributions are made with pre-tax funds, taxable income is reduced. As taxable in…come is reduced, tax is then reduced as well.
16500 Looks like the IRS just released the 401k max contributions for next year. Unfortunately they're staying the same at $16,500. Inflation is to blame, or rather lack the…reof. Which is too bad for all us prodigious savers!
Assuming you're referring to the pre-tax contribution for a 401k .... the max in 2010 is $16,500.
It is $17,000 if you are younger than 50 years of age. There is a catch up limit of $5,500 if you are 50 years of age and older. Those 50 and over can contribute a total of $2…2,500 annually for 2012.
Yes, there is, but the amount is entirely dependent on the situation. It depends on the type of 401k plan you have - traditional, safe harbor, or simple - and it also fluctuat…es on a yearly basis. Both upper limits have increased from 2012 to 2013, and will also change based on cost-of-living adjustments. The amount cannot exceed either of the limits explained above, and it cannot exceed the "excess of your compensation over the elective deferrals that are not catch-up contributions". (I'm afraid I don't entirely understand this, so I'm directly quoting the resource guide from the IRS.)
The limits for 401k contribution can be found under the the section 'taxes' on the 'About' website. The limits for 2013 are $17.500 and $23.000 if one is 50 or older.