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401k contribution and maximum catch up limits

In simple word, 401k Maximum Contribution Limits is the amount you contribute to your 401k account. Therefore, it is your responsibility to contribute the most of your 401(k) plan so that you can spend your life after retirement with peace and money. In this article, we will share some ideas about 401k contribution limits and 401k maximum catch up contributions for people over 50 years, pre-tax contribution limits and also the rules for highly compensated employees.

 Changes in Pre-Tax 401k Contribution Limits:

Year                             Pre Tax Contribution Limit

2008                              $15,500

2009                              $16,500

2010                             $16,500

2011                             $16,500

2012                              $17,000
2013                             $17,500

 Changes in Pre-Tax 401k Catch Up Contributions

2008                              $5,500

2009                              $5,500

2010                             $5,500

2011                             $5,500

2012                              $5,500

2013                             $5,500

 Benefits of 401k Employer Match Contribution Limits:

An employer may also offer their employees matching 401k contributions more than the elective deferrals made by employees,.  Commonly an employer's match depends on the percentage of an employee's pre-tax contribution.

Highly Compensated Employees

If an employee’s annual salary is above $105,000 for the years 2007 to 2009, then that employee is classified as a highly compensated employee