Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Here are a couple of links providing useful summaries of the various retirement plan changes in the new tax bill:


These links (courtesy of "W401K" from the Motley Fool's "Retirement Investing" message board) give quite a few more details than I have seen in most newspapers thus far. (They are not quite as detailed as the comprehensive 200 page link in my post # 51428, but they are also 99% shorter!)

Incidentally, these links seem to reinforce the tentative conclusions that I reached in post 51428, regarding maximum annual employee contributions to 403(b) and 401(k) plans.

For 403(b) plans, it appears that virtually *all* employees are now allowed to contribute the full maximum dollar amount ($11K in 2002, $12K in 03, $13K in 04, $14K in 05, $15K in 06) regardless of what percent this is of their salaries (just so long as the sum of employer plus employee contributions is less than both $40K and 100% of salary, which is almost always the case).

On the other hand, for 401(k) plans, in addition to the maximum dollar amount limit ($11K in 2002, and so on), it seems that there is also something called the "employer deduction limit for profit sharing plans." This has been increased from 15% to 25%. So it appears to me that in practice, many 401(k) participants will also be limited by 25% of their salaries.

Mite E. Mouse
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.