For 2009 the 401K limit is now $16,500, with catchup limits for those over 50 bumping to $5,500 (for a total of $22,000).
That means many people will have free range to save as much as they can. Even at $100K a year this is 16% (or 22%) of income which is a lot for even stingy savers.
The IRA limit raises to $5000, which is good, but many folks myself included think IRA limits and 401K limits should have parity.
For more info:
Read this IRS posting, if you can.
This article at SmartMoney.
Wikipedia also has good articles: IRA and 401K
Sunday, January 4, 2009
Subscribe to:
Posts (Atom)