Food and gas have become more affordable in the recession- good for our wallets, but not for our 401(k) plans. 2010 could mark the first year ever, that the IRS reduces contribution limits to workers’ 401(k) plans. The limits are based on a formula tied to inflation rate changes, so unless inflation picks up in August and September, they may have to reduce the cutoff to $16,000 and the threshold for catch-up contributions to $5,000. Currently, workers can allocate up to $16,500 to their plans, and if they’re 50 or older, an additional $5,500.
http://www.usatoday.com/money/perfi/retirement/2009-08-26-401k-contribution-limits-irs_N.htm?csp=34
Tags: consumer, economy, retirement
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