Do you know your 2011 401K contribution limits? The 401k plan is a retirement plan that companies have for their employees to save for their retirement.
Congress makes the rules for the 401k contribution limits, not the IRS like most people think.
For some years the limit has been the same, because the costs of living adjustment (COLA) did not change.
For instance in 2007 it was $15,500 and 2008 the limit was the same.
The next year in 2009 was $16,500 and 2010, it is the same and that the limit for those years.
The following year of 2011 is also the same ($16,500) but with an additional $5,500 for people who are age 50 or older.
This is called the catch-up provision.
The next thing is that all employers have the opportunity to match what the employee has put into the plan.
For many,the amount is $0.
50 of every dollar the employee puts in.
If they put in $1,000, the total at the end of the year would be $1,500, not including any investment gains.
Many employers will match up to 3 to 6 percent of your gross salary.
It would be foolish not to put in that much since that is free money.
If anyone tries withdraw money out before they are age 59 and a half,, there are severe penalties.
They include ordinary income tax on the amount withdrawn in addition to a 10% penalty tax on the amount withdrawn.
Many people are happy that they have a 401K plan that they can contribute to and put in the maximum 401K contribution limits.
The results will be that you have enough money to live on when you can no longer work to provide for your family.
This will be in addition to Social security income and pension include.
Don't delay in contribution to this account to build wealth fast.
Make your 401K contribution limits count toward giving you the retirement income that you deserve for a comfortable future.