2009 401K contribution limits

IRS announced last week the 401K plan contribution limits for 2009. However, investing doesn't seem too attractive in today's current economic climate. If your 401K plan has interesting options to choose from, then now can be a good time to purchase some funds at some low prices.

2009 401 K contribution limits are as follows:

2009 401k Contribution Limit: $16,500
2009 Catch-Up Contribution Limit (if you are age 50 years old and older): $5,500

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.

You can find 2008 Contribution Limits here.

There is talk in Congressional committees about removing the tax benefits of 401(k)'s. So, take advantage of the tax benefits while you can -- especially if you have employer matching.

You can find the text of the IRS release and other Pension Plan limitations on the IRS Website. It lists contribution and income limitations for IRA's, SEP's and other such technical plans.