2008 Maximum 401 (k) Contribution from the Internal Revenue Service ( IRS )
The Internal Revenue Service has determined that the maximum 401(k) contribution for 2008 will be $15,500, unchanged from 2007. This was determined by taking the 2006 maximum contribution of $15,000 and adding $500 for an inflation adjustment. This represents the minimum amount of increase based on the IRS guidelines.
The IRS has also determined the Catch-Up Contribution for individuals aged 50 and older will be $5,000 for 2008, also unchanged from 2007. Please note that your company’s 401(k) is not obligated to provide this additional provision to its employees. However, if it is offered, it must be made available to all participants who qualify based on IRS guidelines. If you are over the age of 50 and can afford it, you could be putting away over $20,500 into your 401(k) plus whatever your employer matches on your contributions. This is a great way to catch up if you did not contribute enough in your early years in the workforce.
