Take advantage of the new, higher, 2009 401(k) plan contribution limits:
2009 401(k) Contribution Limits
The 2009 401(k) contribution limit is $16,500. If you reach age 50 by December 31, 2009, then you can contribute an additional $5,500, for a total contribution of $22,000.
For the year 2008, the base contribution limit is $15,500 with a possible $5,000 catch-up contribution, so the potential total contribution for someone 50 or older is $20,500.
Note that both the 2008 and 2009 limits also apply to 403(b) and Section 457 plans.
Your employer’s restrictions may cause your individual contribution limit to be somewhat lower. Possible causes include a cap on the percentage of pay you are eligible to contribute and your employer not yet allowing for catch-up contributions.
If you can afford it, contributing up to the limit is a great idea, since a 401(k) plan is one of the best ways to save for retirement.
