Although the formula which determines how much the 401k contribution changes each year would have led to a $500 decrease in the permissible 401k savings level, the IRS has decided to permit the limit to remain unchanged. Largely to help companies and service providers from various software modifications, the limits will be the same as 2009's limit.

Read more about your 2010 401k contribution limits, including the catch-up provisions.

As was recently reported, Half of workers changing jobs cash out 401k when they terminate employment. Among workers in their twenties, 60% distribute the entire balance, according to the Hewitt Associates study. Short of needing money for basic essentials like food and shelter, taking money from your retirement plan is not a good idea. Not only do you lose the benefit of the likely significant growth over the rest of your working career, but you also forgo the tax-advantaged nature of that growth. Furthermore, because of the significant taxes due upon the 401(k) distribution plus the likely penalty for early withdrawal, you'll wind up with a check much smaller than the amount of money you remove from your plan. A far better option is a rollover IRA, where your money can grow for many years in the future. There are many benefits to an IRA rollover. In this case, just because most people are doing it (taking the money), really means you shouldn't.

The Internal Revenue Service (IRS) recently unveiled a new guide for retirement planning oriented at the small business community. This robust web site features information on various self-employment plans including 401(k) plans, SEP-IRAs, and SIMPLE-IRAs. Loaded with links, the web site, called IRS Retirement Plans Navigator, is a great place for additional details for those in charge of assisting small business owners with their own retirement planning as well as those of their employees.

Although 2009 is about to wind to its inevitable conclusion, you might still be able to get your money's worth from your corporate retirement plan account, like a 401(k) plan. Almost all employer-based retirement plans that featuring matching provisions calculate their maximum employer match based on a per-calendar year period. Therefore, even if you had previously neglected to take full advantage throughout 2009, by aggressively contributing to your 401(k) plan between now and the end of December you may be able to receive as much of that "free money" as you would have had you been contributing all year long!

However, once January 2010 rolls around, 2009 is gone and the money you forfeited can never again be realized. So if you've been procrastinating saving for retirement, you've only got a few weeks left to save - and potentially make up for the whole year.

Maximize your employer 401(k) matching program today.