What is the maximum amount that I can contribute to my 401(k) plan?
For 2000, the maximum amount anyone can contribute to a 401(k) plan is $10,500. There are several different limits that apply to a 401(k) plan in addition to the overall contribution limit. The maximum you can contribute will depend on your salary and the type of 401(k) plan to which you are contributing.
The rules for retirement plans are complex. Your plan administrator should have written information about your particular plan that explains these limitations as well as other regulations that apply.
For further information, refer to Tax Topic 424, 401(k) plans.
References:
What are the 2000 and 2001 limits for elective deferrals to 401(k) plans? What are the limits for other types of pension plans?
Elective deferrals into a section 401(k) plan are limited to $10,500 for 2000 and 2001.
For more information, refer to Notice 99-55 for the 2000 limitation and news release IR- 2000-82 for the 2001 limitation. Refer to Tax Regs in English where you can download Internal Revenue Bulletin 1999-49 which includes Notice 99-55. IR- 2000-82 can be found at our News Releases And Fact Sheets page.
References:
How is the dollar limit for 403(b) plans affected by the nondiscrimination requirements related to highly compensated employees?
A 403(b) plan is a tax-sheltered annuity plan for employees of public schools and certain tax-exempt organizations. Under a special coverage and nondiscrimination rule, if any employee may make elective deferrals, the plan is considered discriminatory unless the opportunity to make elective deferrals of more than $200 is available to all employees on a basis that does not discriminate in favor of highly compensated employees. For more information, refer to Internal Revenue Code section 403(b)(1)(D),(12)(A)(ii).
Generally, no more than $10,500 of elective deferrals may be made under a 403(b) program in any tax year. This $10,500 limit operates somewhat like the annual dollar limit on elective deferrals under a cash or deferred arrangement (CODA).
For more information about 403(b) plans, refer to Publication 571, Tax Sheltered Annuity Programs for Employees of Public Schools and Certain Tax-Exempt Organizations.
References:
- Publication 571, Tax Sheltered Annuity Programs for Employees of Public Schools and Certain Tax-Exempt Organizations
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