There is no limit based on percentage of income.
However, most employer plans set a limit as a percentage of salary. Check with your employer for the limit they have set. The law allows them to set a limit as high as 100% of your salary, though I know of none that actually has a limit that high.
The limit on before-tax contributions and Roth 401k contributions for 2009 is 16,500 ($22,000 if you are 50 or over) per taxpayer, no matter how many employers you have. There is also a limit of $49,000 total including all employer and employee contributions (before or after-tax) per unrelated employer. (Few employers allow employee after-tax contributions.)
Withdrawals from 401k accounts are added to your general income for that tax year.
The maximum amount that you can contribute to your 401K plan is 50% of your taxible wages. If your Employer has a "match" Program They Will Contribute a Mirrior 50% with yours
yes
Whatever monies you contribute to 401k you do not pay income tax on now. You pay tax when you withdraw it, after retirement. So you get the benefit of your money growing tax free. For instance if you contribute $100 per month to a 401k that money grows faster than if you contributed after tax where the amount would be say $75 per month. But be aware there are heavy penalties for using that money prior to retirement.
yes IRS will garnish 401k because they see it as a income.
Always contribute what your employer will match, but consider contributing up to 10% of your income if you can afford it.
For 2008 you may contribute the LESSER of: 1. Your total income for the year, or 2. $46,000
The maximum amount that you can contribute to your 401K plan is 50% of your taxible wages. If your Employer has a "match" Program They Will Contribute a Mirrior 50% with yours
Withdrawals from 401k accounts are added to your general income for that tax year.
You can contribute to a Roth IRA after age 70.5 as long as you have earned income, but you cannot contribute to a traditional IRA after that age. For a 401(k) plan, it depends on the rules of the specific plan, but typically you can continue to contribute to it past age 70.5 as long as you are still working and the plan allows for it.
Roth accounts are better because you do not have to pay taxes on the growth. However, if you are above the income limit to contribute to a Roth, a 401K is better than nothing. If possible, invest in both.
yes
Whatever monies you contribute to 401k you do not pay income tax on now. You pay tax when you withdraw it, after retirement. So you get the benefit of your money growing tax free. For instance if you contribute $100 per month to a 401k that money grows faster than if you contributed after tax where the amount would be say $75 per month. But be aware there are heavy penalties for using that money prior to retirement.
yes IRS will garnish 401k because they see it as a income.
You can contribute to both a 401K and an IRA at the same time (same year).
Although the amount you may contribute to your 401k varies by year, in 2012 one could contribute up to $17,000 to their 401k. Remember that one's employer may not match your contribution up to this amount.
form_title=401k Retirement Plan form_header=With a 401k plan you can choose to defer a portion of your salary and save for retirement. Who is your primary beneficiary?*= _[50] How long have you worked for your employer?*= _Enter Number of Years[50] What percentage of your salary do you want to invest?*= _[50] Would you like to contribute to your 401k weekly or bi weekly?*= () Weekly () Bi Weekly