Back in August, I suggested that 401(k) limits might be decreasing in 2010. Fortunately, that’s not the case. Rather, the limit on elective deferrals will be holding steady at $16, 500/year. This limit not only applies to 401(k) accounts, but to 403(b) and 457(b) accounts, as well. If you are 50 or older, you qualify to make an extra $5500 in “catchup” contributions.
Beyond this, the aggregate limit (employer + employee contributions), which is specified by Section 415(c)(1)(a) of the Internal Revenue Code, will also be unchanged at $49k/year (this is the so-called 415(c) limit).
Given the lack of changes, there’s a good chance that whatever you had planned for last year will hold for this year, as well.
One Response to “401(k), 403(b), and 457(b) Contribution Limits for 2010”
Please remember that some readers have passed a chronological age of 50 and will be able to make “catch up” contributions in addition to the amounts listed.