2007-03-19 06:38:27 · 5 answers · asked by rleflore@ameritech.net 2 in Business & Finance ➔ Investing
You can if you work for two or more different companies that offer them; however, all of your contributions into any qualified plan are combined for purposes of the annual contribution limit.
For example, if you're a highly compensated employee, you are limited to ~15k in annual contributions. So if you have $10k going into one plan, you could only put $5k into the other because you'd hit your annual contribution cap.
This is also true if you have a 401(k) and an IRA plan.
2007-03-19 06:46:25 · answer #1 · answered by Mel 6 · 1⤊ 0⤋
Yes you can. Now wether or not you choose to roll it over to another company will penalize you. Some people have multiple 401k plans just kind of depends as to where they have the money at and the interest rates.
2007-03-19 13:46:16 · answer #2 · answered by nay 3 · 0⤊ 0⤋
The short answer is yes you should be able to do this. If you are an employee under age 50 you can can contribute ("elective deferrals") up to $15,000 MAX per year TOTAL for ALL plans. If you are over 50, you can make an additional $5000 catchup contribution. If you own your own business, you can contribute up to $45,000/year total per person. You should check with a financial advisor or CPA prior to making this type of transaction.
2007-03-19 13:58:02 · answer #3 · answered by Richardme73 1 · 0⤊ 0⤋
Richard's answer is accurate. If you work for more than one company, you can contribute to both, up to the $15,000 combined limit. If you leave an employer, you can keep the 401(k) open, but many ex-employers will force you to either roll it over or take a cash distribution if the balance in the account is below a certain level (usually $3,000 or $4,000).
2007-03-19 18:38:37 · answer #4 · answered by hundreddegreesintheshade 1 · 1⤊ 0⤋
I am sorry I don`t understand what you mean? Can you explain further!
2007-03-19 13:43:39 · answer #5 · answered by helen b 3 · 0⤊ 0⤋