Project Retirement

In a press release, the IRS announced it will leave the 401k limit at $15,500 for 2008. The annual limit on catch-up contributions for those 50 and over will remain unchanged at $5,000.

Your 401(k) fund pre-tax contribution limits set by the IRS for 2008 are:

# $15500 for those under 50 years of age

# $15500 plus $5000 additional catch up contribution for those over 50 years of age

There are several different limits that apply to a 401(k) plan in addition to the overall contribution limit. These limits could result in a contribution limit less than that specified by the IRS. Your plan administrator should have written information about your particular plan that explains these limitations as well as other regulations that apply.

To maximize your 401(k), you should try to contribute the maximum amount you are allowed each year.

Resources:
IRS
PlanAdviser