The current year’s 401k contribution limits determine how much money you are entitled to contribute to your 401k plans for the entire year. This means the collective total of contributions to all 401k plans in your name cannot exceed this maximum amount. It even includes Roth 401k plans in the same total.
There are two numbers you need to collect before determining your personal maximum contribution limit. First, find out how much of your salary your employer’s plan will allow you to contribute. For example, if your employer has set up a plan that allows you to contribute up to 10% of your salary and you make $45,000 for 2009, then your employer’s limit will be a yearly contribution up to $4,500. Continue reading ‘What Are the 2009 401K Limits?’ »