I really wish they would raise the maximum elective deferral you can save in your 401(k). Ya think that might actually help some folks who plan to retire some day.......The reason for the limits is that wealthy people would be able to put a very large part of their income behind a tax sheltered wall (meaning no tax receipts for the government) while poorer people, who have less savings in general, and who need to spend a higher proportion of their income on necessities like food and shelter, would not.I suspect it makes less difference than either of you think. In my experience the Highly Compensated Employee limit of $110k makes the higher limit meaningless, as virtually of the people who could actually afford to contribute more are actually limited to an even lower number. I was able to max out my contributions for only a couple of years before crossing that line, after which my limit was significantly lower.
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