I.R.S. Raises Maximum Annual 401(k) Contribution

[n2doc]

By ANN CARRNS
Updated at 9:19 a.m. to reflect revised information from the Plan Sponsor Council of America on the percentage of companies that limit 401(k) contributions below the I.R.S. maximum.

Workers will be able to contribute more money to their 401(k) retirement plans next year, under new limits set by the Internal Revenue Service.

The I.R.S. is increasing the maximum annual contribution that employees can make, without paying upfront taxes, to $17,000. The increase, required by law to adjust for inflation, is $500 higher than this year’s level. The ceiling hadn’t been raised since 2009 because inflation had been too low to prompt an increase.

Five percent of the roughly 60 million 401(k) plan participants contribute the maximum amount, said David Wray, the president of the Plan Sponsor Council of America (formerly known as the Profit Sharing/401k Council of America). And roughly another 5 percent would contribute the maximum amount, if their companies let them, he said.

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http://bucks.blogs.nytimes.com/2011/10/21/i-r-s-raises-maximum-annual-401k-contribution/

[Poll_Blind]

1. LOL! The croupier just upped the table's limit. nt

PB

[DURHAM D]

2. Exactly.

[Myrina]

3. Haha sure, Put more in for them to lose on crappy fraudulent investments ...

"Thanks for the free money, suckers. Sincerely, Wall Street."