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The maximum pre-tax contribution to a 401(k) for 2000 is $10,500, but does anyone know what the limit is for 2001 (and later)? I've tried searching the IRS site, but can't find anything.

Thanks.
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It should be $11,000 or 25% of your income whichever is less and assuming you aren't in the group to be deemed highly compesated which can have a different limit.

JB
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ubject: Re: Maximum 401(k) contribution for 2001?
Author: jbking Date: 7/13/00 8:07 PM Number: 23352
It should be $11,000 or 25% of your income whichever is less and assuming you aren't in the group to be deemed
highly compesated which can have a different limit.

Hmmmmmmmmmmmmmmmmmmmmm ????? :^} What say thee?

What are the "different" contraints for the highly compensated group you speak of. I just momentarily, happen to be one in that group, but am still living under the illusion that I too am also limited to 10,500 or which is less. $ 10,500 is less.

Go ahead, now.....................
Show me the new money! WoooooHOOOOOOOOOOOOOOO!!!
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The constraint involves what is often called Testing which is to ensure that those in the highly compensated group are not more than 2% away from those in the other group. So, if the non-highly compensated are only contributing 6% you can only contribute 8% or the cap whichever is less instead of that big 25%.

JB
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Gothcha! I hoped u might be referring to being able to INCREASE the upper limit somehow.....

Now that u mention it, one year money was returned for just the reason you cited.... thank you!
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Greetings, Chekat, and welcome. You asked:

<<The maximum pre-tax contribution to a 401(k) for 2000 is $10,500, but does anyone know what the limit is for 2001 (and later)? I've tried searching the IRS site, but can't find anything. >>

The limit for 2001 won't be announced until sometime in December, and it will be based on inflation for this year. If inflation on this year's limit of $10.5K is $500 or more, then the amount will go up by $500. If inflation is less than $500, there will be no change.

Regards..Pixy
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The maximum pre-tax contribution to a 401(k) for 2000 is $10,500, but does anyone know what the limit is for 2001 (and later)?

The inflation adjustment for 2001, if any, will be based on the September 2000 CPI. After a little treasure hunt through the Code, you'll find this in section 415(d). For 401(k)'s, the minimum adjustment is $500, and the rounding is always down.

TMF ExRO
Phil Marti
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