When it comes to retiring it is the time in your life when the worries you have had through your working years should no longer be significant, it should be a time to relax and to enjoy the fruits of your labors. The money that you put away for this time of your life would be taxed if it was not for the allowance that the government will allow you to put into savings without being taxed on it. Each year the amount of money you can put into savings without being taxed changes with inflation. This will be explained is this article as I answer your question of what are the 2009 401k contribution limits.
The amount you decide to save is up to you and there is no limit on what you save the only limitation is how much the government will allow you to save without being taxed. This will allow you to put a certain amount away without having to give any of it away to the taxman.
This year the increase on the amount you can save is $1,000. This is excellent news for those putting money away for the golden years. The full amount you are able to put away before the taxman touches it is $15,500, which does not mean you have to put away this amount, you can put up to this amount away. The amount this covers is people that are employed and also younger than 50.
If you are still working over the age of 50 and are still paying towards your pension fund you will be able to put away more than your younger peers. The amount you can save is a maximum of $22,000.
You employer in some circumstances depending on your job benefits will put a contribution towards the amount that you are paying in yourself. This amount to someone who is on a salary of $100,000 each year will allow the employer to contribute $6,000 or less before any tax sanctions are put on to the pension fund. This is of course in addition to what ever you decide to contribute.
When a new year begins and 2009 ends you will find that with this new year comes a new amount that you will be eligible to put away before taxation sanctions begin. 2010 numbers are not yet released, but they may exceed the 2009 401k contribution limits. This is done annually to meet the requirements of inflation. As you will know each year many things go up in price and by the time you are ready to retire they may have gone up so much that the amount you have worked so hard to save will be nothing in comparison to the costs of living. Fortunately, this has been thought of in advance by the government so this will not be the case.
If you are interested in the 2009 401k contribution limits breakdown you can find a number of retirement accounts covered. There are different rules that apply to the Roth 401k, so make sure you always proceed with caution.
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