401k Contribution Limits for 2007

In 2007, the maximum contribution to a 401(k) and 403(b) has been increased to $15,500 from $15,000. The catch-up contribution for employees age 50 and older is the same at $5,000. So if you are age 50 or older in 2007, you can contribute $20,500 to your 401(k) or 403(b).

IRA and Roth IRA limits stay the same in 2007 with a maximum contribution of $4,000 and a catch-up contribution for age 50 and older of $1,000.

Please note that a participant who reaches age 50 before the end of the calendar year is considered eligible for the catch-up contribution that year.

This week I'll cover IRA and Roth IRA contribution strategies and income limitations.

Libby Mihalka