One of my big goals in 2010 was to max out my 401k and I accomplished that in May.
As 2010 rolls to a close, it's time to begin planning for 2011.
As you begin planning, you might be wondering how much you should elect to contribute to your 401k for 2011 By way of background, as you likely know, the IRS has a contribution ceiling that represents a limit for tax deferred contributions.
And one of the important questions for planning for 2011 is what is the new contribution maximum going to be for your 401k or Roth IRA.
If you're like me, you want to make sure that you can deduct as much as possible from your taxes, so the higher the number, the better.
The frustrating this is that the IRS hasn't yet posted what the limits are going to be for next year, so I took matters into my own hands and did some research.
The IRS doesn't offer a number on its site for next year, but it does indicate that future increases in the limit for 401k contributions will only go up if inflation goes up.
With the way that things are currently trending, that means that next year we won't be getting an increase next year.
That means that social security payments, Roth IRA and 401k contributions limits-- anything pegged to inflation -- will pretty much stay the same next year.
In 2011, my informed best guess is that the contribution maximum will remain at $16,500.
As 2010 rolls to a close, it's time to begin planning for 2011.
As you begin planning, you might be wondering how much you should elect to contribute to your 401k for 2011 By way of background, as you likely know, the IRS has a contribution ceiling that represents a limit for tax deferred contributions.
And one of the important questions for planning for 2011 is what is the new contribution maximum going to be for your 401k or Roth IRA.
If you're like me, you want to make sure that you can deduct as much as possible from your taxes, so the higher the number, the better.
The frustrating this is that the IRS hasn't yet posted what the limits are going to be for next year, so I took matters into my own hands and did some research.
The IRS doesn't offer a number on its site for next year, but it does indicate that future increases in the limit for 401k contributions will only go up if inflation goes up.
With the way that things are currently trending, that means that next year we won't be getting an increase next year.
That means that social security payments, Roth IRA and 401k contributions limits-- anything pegged to inflation -- will pretty much stay the same next year.
In 2011, my informed best guess is that the contribution maximum will remain at $16,500.