As far as retirement plans go, the 401(k) has become one of the most popular choices available. It’s low cost, easy set up and wide range of investment possibilities have made it a viable option for both large and small businesses. It has also put the sole responsibility of saving for retirement squarely on the shoulders of the employees.
Maximum 401(k) Contribution Limits
If you’re saving for retirement through a 401(k), the total contribution amount will remain the same as in 2010. This applies to 403(b) retirement plans as well.
The maximum 401(k) contribution for 2011 is set at $16,500. If you happen to have more than one 401(k) – for example a Roth 401(k) and regular 401(k) plan or simply multiple employers, the contribution limit applies for the total amount of all your combined 401(k) plans. So if you have two jobs that both provide a 401(k), you can’t contribute $16,500 to each plan, for a total of $33,000. You’ll only be able to add a total of $16,500 between all the plans. Continue Reading…