401k Contribution Limits 2008New 401k Contribution Limits 2008The 2008 401K contribution limits for employee contributions is going to stay at $15,500. This is the "elective salary deferral" portion of the possible 401K limits. What you need to keep in mind is that your employer will also probably set a specific limit such as 10% of your salary. In that case, the actual limit will depend on your salary and will be the lesser (it's always the lesser, isn't it?) of 10% or $15,500.401k New Contribution Limits and What They Mean 2007 401k Contribution Limit: $15,500 2007 Catch-Up Contribution Limit (only for those over 50 years old): $5,000 401k Contribution Limits 2007 - It is important to keep your eyes on what amount you are allowed to contribute to your 401k account each year. There are two different 401k contribution limits you need to be aware of. The government sets the limit allowable and the employer sets their own 401k limits for their employees. U.S. Government Imposed 401k Plan Limit Guidelines Lucky for us, the government is beginning to understand the importance of saving for retirement and has started increasing the limits each year to help people save so they don’t have to rely on Social Security (which may not exist by the time I retire). 401k New Contribution Limits 2006For 2005, the maximum amounts you can contribute to your 401(k) plan, as set by the IRS is as follows:2005 401k Plan Limit: $15,000 2005 Catch-Up Contribution Limit (only for those over 50 years old): $5,000 New Employer Imposed 401k Plan Limit GuidelinesEmployers can choose their own maximum limit.For example, an employer might limit their employees to a maximum contribution of 10% of their salary. That means a person with a salary of $50,000 effectively has a contribution limit of $5,000 even though the government limit is higher. Of course, if an employee in the same company is making $250,000 and wants to contribute 10%, they can’t (because the government limits take effect). So the general rule is to determine what your employer allows, then take a look at the 401(k) contribution limits by year imposed by the government. Personal Financial Solutions Home | Site-Map |