Sun 14 Jan 2007
I always find myself looking for these limits so I figured I’d just put them on my site for a point of reference. Below are the maximum contribution limits for 401k plans each year from now through 2009.
| Year | Maximum contribution limit |
| 2006 | $15,000 |
| 2007 | $15,500 |
| 2008 | $15,500 |
| 2009 | $????? |
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January 14th, 2007 at 5:51 pm
Your figures are accurate for 2006 and 2007. For 2008 and 2009 they ~might~ be accurate. According to the IRS at http://www.irs.gov/retirement/sponsor/article/0,,id=151925,00.html the contribution limits are set by cost of living increases, which haven’t yet been established for the future.
If cost-of-living increases are on the order of 3%/year, those could very well be the figures for 2008 and 2009. But best to check with an IRS source toward the end of the year to see if the 2008 contribution limit is indeed $16,000.
January 14th, 2007 at 8:17 pm
Thanks for the info
January 19th, 2007 at 5:23 pm
Don’t forget that if you are over 50 years old you can contribute an additional $5K.
September 25th, 2007 at 3:41 pm
Comment 1 is right on. The 2008 number could, theoretically, be +$500, +$1000, or nothing (no change).
Last year about this time (3Q 2006), researchers crunched the numbers and came up with a projected increase of $500. But that was not official until the actual end of the year.
So far as I can tell, the numerous web references to a 401K contribution limit of $16,000 (as of 9/25/07) are based on misunderstanding and/or speculation, NOT analysis of the data that will drive the adjustment.
October 18th, 2007 at 12:32 pm
And the official word today here:
IRS Announces Pension Plan Limitations for 2008
http://www.irs.gov/newsroom/article/0,,id=174873,00.html
Answer? $15,500 for 401(k) in 2008.
Any financial web sites or gurus (barring present company, of course) stating $16,000 have been revealed as NOT KNOWING WHAT THE HECK THEY ARE TALKING ABOUT.
But you (we) know better! Insert evil grin. Might wanna update that table, though.
October 18th, 2007 at 12:47 pm
Thanks H B