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Author: MusicFish Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79102  
Subject: Question on 401(k) contribution limits Date: 11/25/2003 11:12 PM
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I have a kind of "off-the-wall" question to ask about 401(k) contribution limits.

Before I ask the question, let me give a little bit of background. I know that the "annual deferral limits of qualified plans" for 2004 is $13,000. At my current job, I am allowed to contribute between 1% and 25% of my total salary, with my current contribution rate at 15%.

I will (almost certainly) be relocating to another state in the middle of next summer; if I do move, I will (almost certainly) be changing jobs. If I do change jobs, one of my search criteria for a new company will include the ability to contribute to a 401(k) plan (or some other similar retirement vehicle).

If I do wind up with a new job next year, I will be contributing to my present plan for a little more than half of the year and to the second plan for the rest of the year. So, here is the "off-the-wall" question that I have: if I participate in two different 401(k) plans in 2004, is the $13,000 limit for both plans combined or does each plan have it's own (separate) $13,000 limit?

Also, if the limits are for both 401(k) plans combined, am correct in assuming that I am responsible of making sure that I don't go over the $13,000 limit (for tax purposes)?

Thanks in advance,
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