Sunday, July 06, 2008

2008 401K Contribution Limits

OK, since I have such a VAST amount of readers (you know who I am), you will forgive me for writing a note to myself. I keep forgetting the IRS limits for 401K contributions. So, I thought I would write a note for myself and others. For 2008, the maximum amounts you can contribute to your 401(k) plan, as set by the IRS is shown below:

2008 401k Contribution Limit: $15,500
2008 Catch-Up Contribution Limit (if you are over 50 years old): $5,000

These are the IRS limits, but you are also subject to the limits imposed by your company’s 401k plan. Matching contributions, if any, provided by your employer do NOT effect these limits. Check with your employer to see if they have any contribution limits.

Now, I wonder how many start-up companies offer 401 (k) programs. They are incentives that are valuable to some, but not necessarily all. I wonder how rare it is to provide any matching funds, and if data is kept on these sort of statistics.

You can find 2009 401k contribution limits here.

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