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The IRS (Internal Revenue Service) announced on
October 15th, 2009 the cost of living adjustments to pension and 401k
retirement plans for the upcoming tax year of 2010. These adjustments
are carried out by the Commisioner under Section 415 of the Internal
Revenue Code. The 401k max contributions for the tax year 2010 and previous
years is detailed below:
Note: The max 401k contribution for the year 2010 is
$16,500.
| |
2010 |
2009 |
2008 |
2007 |
2006 |
2005 |
| Max 401k Contributions |
$16,500 |
$16,500 |
$15,500 |
$15,000 |
$15,000 |
$14,000 |
| Defined Annual Contribution Limits |
$49,000 |
$49,000 |
$46,000 |
$45,000 |
$44,000 |
$42,000 |
| Maximum Allowable Annual Compensation |
$245,000 |
$245,000 |
$230,000 |
$225,000 |
$220,000 |
$210,000 |
| 401K Catch Up Contributions |
$5500 |
$5500 |
$5000 |
$5000 |
$5000 |
$4000 |
| |
2010 |
2009 |
2008 |
2007 |
2006 |
2005 |
| 403b Plans / 457 Plans |
$16,500 |
$16,500 |
$15,500 |
$15,500 |
$15,000 |
$14,000 |
| Simple Employee Deferral |
$11,500 |
$11,500 |
$10,500 |
$10,500 |
$10,000 |
$10,000 |
| Simple Catch-Up Deferral |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,000 |
| SEP Minimum Compensation |
$550 |
$550 |
$500 |
$500 |
$450 |
$450 |
| Maximum Allowable SEP Compensation |
$245,000 |
$245,000 |
$230,000 |
$225,000 |
$220,000 |
$210,000 |
Become
a Millionaire with your 401k Retirement Plan
In
the year 2004, the average household savings in USA averaged 0.8% of
disposable income (income after all your expenses have been paid off).
This rate has been the lowest since the Great Depression and the past
3 decades have seen savings rates of over 7%. Why is this 0.8% rate
so low? Is it because Americans are just bad at saving money, or too
much of our disposable income is going towards paying off our homes?
In order to reach your goal of having $1 million upon retirement, here
are a few suggestions: (Read
Full)
Sticking
with your 401k Retirement Account Pays Off Long Term, study reveals
A study carried out
by 2 Washington DC state organizations revealed that 401k participants
who contributed payments towards their employer sponsored 401k retirement
plans over the past 7 years have seen growth rates of over 50%. This
is inspite of the tech boom bust of 2000 and market declines in 2002..
(Read Full)
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