What Is The Maximum 401K Contribution?

Here is an easy guide to knowing how much maximum you are allowed to contribute into your for 2009 and 2010, with advice on contribution amounts subject to age.

What is the maximum 401K contribution you can make?

As the end of 2009 approaches you may still be in the process of starting your 401k retirement plan so you will need to know the maximum 401k contribution you can make this year. You will also need to be given some financial advice regarding contributions in 2010, so that you do not make any mistakes and can plan your budget ahead of time.

Remember that these contributions will be tax free until withdrawn.

If you are self employed you may be able to save up to $51,000 per year in your 401k plan, it is worth checking onto this with your local 401k advisor.

The amounts according to age for 2009/2010 for employed people are as follow:

If you are age 49 or below you must only contribute $16,500 maximum.

If you are age 50 or above then your maximum 401k contribution will be $22,000.

In 2010 the figures for the maximum 401k contributions you can make will remain static. But for ease of clarity those figures are:

For 2010 if you are 49 years old or under; you will be allowed a maximum 401k contribution of $16,000 for the year.

Again for anyone over 50 years of age it the maximum allowed contribution is $22,000 for the year 2010.

Keeping a check on your 401k

If your plan is through your employer there is really nothing much more you have to do other than wait for a monthly statement.

You can get more information by asking your employer about how your contributions affect your wages. Normally you will see the amount deducted on your wage slip.

Self employed people will also receive a monthly statement, but can also make enquiries into their account status at any time. You should have all these details sent to you when you start your plan.

Related posts

1. What is the Max Contribution to 401k?
2. What is the 401K Contribution Limit?
3. What Is The Maximum Pre-Tax 401K Contribution?
4. What Are Contribution Limits For 401K & Roth Ira’S For 2010?
5. How Much Can I Contribute To My 401K Plan At Work?

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