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What is Saver's Credit?

February 23rd, 2010 | No Comments | Posted in 401(k)

Saver’s Credit is an important tax credit directly targeted at promoting qualified retirement savings to low- to middle-income Americans. Eligible households can build their nest eggs for their retirement with some help from federal government.

The Saver’s Credit was originally passed into law as part of the Economic Growth and Tax Relief Reconciliation Act of 2001—but with a sunset provision that would make it expire at the end of 2006. On August 17, 2006, President Bush signed the Pension Protection Act of 2006, and the Saver’s Credit was among the many important pension-related provisions of the Economic Growth and Tax Relief Reconciliation Act that were made permanent Continue to Read »

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2010 and 2011 401(k) Contribution Limits

February 22nd, 2010 | No Comments | Posted in 401(k)

Annual 401(k) contribution limits are determined by IRS. Your 401k maximum contribution limit — the combined total maximum contribution that you can make each year to ALL 401k plans in which you participate, including standard 401k plans and Roth 401k plans — is the lower of: (1) the maximum percentage contribution limit allowed under each of your employers’ plans, or (2) the dollar limits shown in the table below.

401k Contribution Limits
Year AGE 49 & BELOW AGE 50 & ABOVE CATCH UP LIMITS
2006 $15,000 $20,000 $5,000
2007 $15,500 $20,500 $5,000
2008 $15,500 $20,500 $5,000
2009 $16,500 $22,000 $5,500
20010 $16,500 $22,000 $5,500
2011 $16,500 $22,000 $5,500

* Catch up contribution is only applicable for people over the age of 50.

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