off topic. what is the max you can put in a 401k in 2005? is it $15000?

trytrytry · May 23, 2005

off topic. what is the max you can put in a 401k in 2005? is it $15000?

what happens if you have two jobs during the year and go over that amount due to payroll deductions that you dont watch close?

RPM · May 23, 2005

if you go over the amount, its not pretax dollars.

doctorsarvis · May 23, 2005

I believe it is 14k for 2005 unless you are over 50. They have been increasing it over time, though, so it could be up to 15k.

WildBill · May 24, 2005

14k this year, 15k next year. If you are over 50 you get a catch-up amount, but I forgot what it was. I wish they would let me put more in, but oh well have to fund the IRA instead.

luap · May 24, 2005

The following rules apply to limits on 401(k) plans for 2005 and beyond:

<TABLE cellSpacing=0 cellPadding=5 border=0><TBODY><TR bgColor=#efefef><TD class=bodyCopy>2005</TD><TD class=bodyCopy>$14,000</TD></TR><TR><TD class=bodyCopy>2006 and thereafter</TD><TD class=bodyCopy>$15,000 (indexed beginning in 2007)</TD></TR></TBODY></TABLE>

Catch-Up Contributions
Participants age 50 and older who defer additional salary into 401(k),
as follows:

<TABLE cellSpacing=0 cellPadding=5 border=0><TBODY><TR bgColor=#efefef><TD class=bodyCopy>2005</TD><TD class=bodyCopy>$4,000</TD></TR><TR><TD class=bodyCopy>2006 and thereafter</TD><TD class=bodyCopy>$5,000 (indexed beginning in 2007)</TD></TR></TBODY></TABLE>

So if you are age 50 or older in 2005, the max is $18,000.

xpanda · May 24, 2005

On the assumption that a 401K resembles our RRSP (Registered Retirement Savings Plan) and are tax-free retirement savings accounts, why a dollar maximum as opposed to a max as a percentage of income?

Fishhead · May 24, 2005

My 401k is my gambling BR

Sad, but very true.

-F-

Dante · May 24, 2005

Fishhead said:
My 401k is my gambling BR

Sad, but very true.

-F-

:biggrinin :messed:

jwunderdog · May 24, 2005

On the assumption that a 401K resembles our RRSP (Registered Retirement Savings Plan) and are tax-free retirement savings accounts, why a dollar maximum as opposed to a max as a percentage of income?

There is a max as a % of income. The answer to your other question is the Gov. doesn't want extreme high income earners to be able to defer paying taxes on a much larger chunk of change.

Illini · May 24, 2005

xpanda said:
On the assumption that a 401K resembles our RRSP (Registered Retirement Savings Plan) and are tax-free retirement savings accounts, why a dollar maximum as opposed to a max as a percentage of income?

There are limits on both. It used to be 15% or 10K, whichever is less. Now I believe it's 40% or $14K, whichever is less.

xpanda · May 24, 2005

ok, gotcha.

viking611 · May 24, 2005

I'm quitting my job in 2 weeks, anyone know what penalties are for cashing it out and not rolling it over??

luap · May 24, 2005

In addition to the general income tax rates, there is a 10% penalty on the amount not rolled over for federal purposes. There may be an additional state income tax penalty. I am not sure how the state of Illinois would penalize.

off topic. what is the max you can put in a 401k in 2005? is it $15000?

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