What is the maximum amount that I can contribute to my 401(k) plan?
For 2002, the maximum amount anyone can contribute to a 401(k) plan is $11,000 except for catch-up contributions for employees age 50 or over (see the next topic). 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 is the 2002 limit 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 $11,000 for 2002, except that employees age 50 or over may be eligible to make additional contributions to 2002. See Tax Topic 424 401 (K) plans, for more information.
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 contributions deferrals of more than $200 pursuant to a salary reduction agreement 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).
The maximum elective deferral for 2002 that an employee may make to a 403 (b) plan is $11,000.00. This will increase to $12,000.00 for 2003, and $13,000.00 for 2004. In addition, employees age 50 or over may be eligible to make catchup contributions of $1000.00 in 2002 (see Publication 571 (PDF) chapter 10).
For more information about 403 (b) plans, refer to Publication 571 (PDF), Tax Sheltered Annuity Plans 403 (b) Plans.
References:
- Publication 571 (PDF), Tax Sheltered Annuity Plans 403 (b) Plans
- IRS Code Sec. 402(g) (1)
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