Same as above. Whats the max I can add per year in California?
2006-12-19 05:13:09 · 9 answers · asked by Question Man 1 in Business & Finance ➔ Personal Finance
15% of your salary, upto (I think) $15k. You may also add upto $4k per yr in an IRA $5k if you are over 50y/o
2006-12-19 05:17:42 · answer #1 · answered by ricks 5 · 0⤊ 0⤋
401(k) limits fall under IRS code section 402(g) Elective
Deferrals. The general limit for 2007 deferral is $15,500. This is not a state by state imposed limit, but is a federal limit. The combined total can not exceed this dollar amount. Example say you have two employers during 2007 and both offer a 401(k) plan, then the combined with both employers may not exceed $15,500. Special provisions apply to people ages 50 and older (that may contribute even more).
Mr. Money below makes excellent points to keep in mind. Each plan sponsor of a 401(k) can also have plan provisions that restrict limits even further. Having worked in this industry for 15 years with fortune 500 companies this is typically unheard of to limit the deferral amounts. The reason is that highly compensated employees "HCE's" are adversely effected by the rank and file workers "NHCE's". To that end they want the rank and file to put in the max which allows them to keep from getting refunds out of there 401(k) deferrals. The IRS imposing non-discrimination testing annually and if the test is failed .... calculations must be made to the determine the amount to be refunded to each HCE. If you are in the HCE category the IRS publishes the definition of a HCE online.
Good luck!
2006-12-19 17:20:01 · answer #2 · answered by Kirk S 2 · 0⤊ 0⤋
It depends on if you are self employed also if you are over age 50 a SEP has different guidelines.
The max in 2005 was 14k but there are catch up contributions
more if you are over 50
2006-12-19 05:43:45 · answer #3 · answered by Robert 2 · 0⤊ 0⤋
The limit for 2006 is $15,000. If you are over the age of 50, then you can contribute up to an additional $5,000.
2006-12-19 05:19:19 · answer #4 · answered by jseah114 6 · 0⤊ 0⤋
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2016-12-30 15:57:25 · answer #5 · answered by sterman 3 · 0⤊ 0⤋
*Correct Answer*
$15,000 in 2006
$15,500 in 2007
$5,000 additional if you are above 50.
You can only contribute what you earn, if you make less than 15K, then you cannot contribute the full amount.
Different comapnies can place different rules in addition to the basic rules (loans, vesting, match, max contribution %).
2006-12-19 05:48:04 · answer #6 · answered by MR MONEY 3 · 1⤊ 0⤋
I think is is 50% of your income or up to 25k unless your are over 50 and then you can do the catch up plan
2006-12-19 05:20:22 · answer #7 · answered by kcbrown1979 3 · 0⤊ 0⤋
I think it is 25%.
2006-12-19 05:16:22 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I think it is $15500
2006-12-19 05:21:22 · answer #9 · answered by Aaron 3 · 0⤊ 0⤋