jhazens wrote:>>>For 2002 each individual may contribute a total of $11,000 toward their 401k plan. This is set by the government. The amount is actually set to increase over the next few years and will be $15,000 in 2006.A lot of companies will match 50%, but usually not for the full amount of your contribution. If your wifes non-profit matches 50% of the whole contribution I would definately max that puppy out. In my case, my company matches 50% of the first 7% of my contribution.Due to the changes in max. contributions a lot of companies have increased the max percentage you can contribute. For example, my company used to have an 18% max which is now unlimited, althought you will eventially hit the 11k government max.So if your wife makes 50k a year and wanted to hit the max 11K contribution. That would be 22% of her gross. If she gets paid every two weeks (26 pay periods per year) she would need to contribute 22% of her gross per 2 week period or about $425 a paycheck to hit the max.<<<Does the $11,000 limit apply to the workers contribution, or to the workers contribution plus the employer's match?I.e. if I have a 50% match on all my contributions, does that mean I can contribute $11,000 and end up with $16,500 with the match? Or does it mean I contribute $7333.33 and end up with $11,000?Seperately, if only a portion of your contribution is matched, you should be careful you don't bump up against the $11,000 limit before the end of the year and miss out on the employer's match for the rest of the year.-CB
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