401(k) Limits for 2009
Wednesday December 3, 2008
Before President-elect Obama takes his oath of office on January 20, many new laws and limits will take effect to mark the annual flipping of our calendars on January 1. One of the many important changes will be the new 2009 401(k) contribution limits. For the first time, individuals will be able to save $16,500 per year in their 401(k) plans (up from $15,500 during 2008). Those 50 or older can save an additional $5,500 (up from an supplemental $5,000 for 2008).
With the economy where it is, saving may be harder than during normal times. But it's also more critical.
With the economy where it is, saving may be harder than during normal times. But it's also more critical.
If a person works for two employers, one with a 401K plan and the other with a Simple IRA, and he is over age 50, can he contribute the maximum amount to each plan, $20,500 to 401k and $13,000 to Simple IRA, or must the total contribution be scaled back? If so, how do you determine the scaled back amount?