|401k Limits IRS|
401K rules that define your 401K maximum contribution limits - the contribution of a total maximum of what you can do every year all 401K plans in which you participate, including the standard 401K plans and plans for Roth 401K - this is the lesser of: (1) a maximum limit percentage contribution allowed under each of your employers plan, or (2) the dollar limits shown below. For example, if your employer's 401K plan, allows for more than 10% of your salary and you earn $ 50,000, your maximum contribution is $ 5500, and $ 17,500 contribution limit in 2013, which applies only to senior employees.
401k limits IRS. To limit the maximum contribution for all of your 401K plans could be increased on January 1 of each, based on the cost of living increase over the previous year. The new limit will be announced by the IRS in mid-October.
Catch-Up 401K Contribution Limit
If you are aged 50 or older, you also have the right to make a "catch-up contributions to 401K, in addition to the regular 401K range - if your employer gives them. (Unfortunately, your employer is not obliged to do so.) 401K catch-up contributions each year is limited to additional.
The maximum catch-up contribution limit for all of your 401K plans may be increased on January 1 of each, based on the cost of living increase over the previous year. New catch-up contribution limit will also be announced at the IRS in mid-October.
Corresponding to Employer Contributions
The corresponding employer contributions are not counted your 401K contribution limits. If you state the maximum contribution amount each year, the relevant employer contributions are in addition to the 401K limit. (FYI: Depending on the design of his 401K plan, the employer can match up to 6% of your pre-tax compensation.)
Several major 401K rules apply in addition to the overall limits of the deposit. The absolute maximum you can contribute depends on your salary and 401K-type plan in which you participate. Review your employer's plan documents for more information.