401(k) Contribution Limits

Tip for today:

401(k) contribution limits do not include your employer's contribution. In other words, you can put money up to the match ($16,500 for 2009-2010) and your employer can contribute matching funds on top of that. For example, if you make $100,000/year and your employer matches up to 5% of your salary, if you contribute the maximum of $16,500 and your employer matches $5,000, the total amount that will go into your 401(k) account for that year will be $21,500. You can read about it on the IRS' website here.