Sometimes I like to post information that I think will be of use to me (and others) sometime down the line, this is one of those posts and this one is about the 401k contribution limits for 2006 (you can’t do anything about your contributions for the rest of 2006 now, unless your HR/benefits department can execute contribution limit changes within a day or two) and 2007.
The tax-deferred 401k contribution limit for $15,000 and an additional $5,000 for those who are wiser than fifty. For 2007, the contribution limit for 401k’s will be the same as 2006 but from here on out the limit will be adjusted for inflation in $500 increments (the same applies for the catch-up contribution as well).
2 responses to “2006 and 2007 401k Contribution Limits”
Correction. The 401k contribution limit is not the same as 2006, it’s already $500 higher due to an adjustment for inflation. Straight from the horse’s mouth (or some other part of the horse) http://www.irs.gov/formspubs/article/0,,id=117542,00.html
Thanks for the correction and thank you for the classless response to my math and logic error in my post about 401k vs. debt post.