401K Contribution Limits 2013
401K Contribution Limits for 2013
Click Here for 2014 Contribution Limits
Those who will be participating in 401K plan in 2013 will be able to save up to a maximum of $17,500 this year.
The 401K contributions limits for 2013 are follows:
- You can save a maximum up to $17,500 in elective salary deferrals,
- In addition, you can save an additional $5,500 in “catch-up contributions” if you are age 50 or older,
- Your Total contributions (employee’ sContribution plus employer’s matching contributions) cannot exceed $51,000.
The 401K Limit is applied to all your 401K accounts combined. If you switched jobs and worked in 2 or more jobs ina particular calender year, you have to make sure that the total of all those 401K contributions is not exceeding the 401K limit of $17500 for the year 2013.
So now that you know your 401K limits, go ahead and start saving as per your 401k limits. Remember, the more you save in the beginning of your career, the more money you will get in your retirement as compounding of money plays an important role in 401k.