Thread: IRS Limit 401K

Well, it's actually $15,000 (indexed to inflation) whatever that comes out to be. You are not ready for prime time catch up yet? That stays at $5,000. That extra K plus match is down right beneficial when one does the DCA.

Found this on the IRS website, but it's really hard to tell what is up-to-date, and what is not:

http://www.irs.gov/retirement/partic...151786,00.html

To quote:

"There is a limit on the amount of elective deferrals that you can contribute to your traditional or safe harbor 401(k) plan.

- The limit is $15,000 for 2006 and increases to $15,500 for 2007.
- The limit is subject to cost-of-living increases after 2007.

Generally, all elective deferrals that you make to all plans in which you participate must be considered to determine if the dollar limits are exceeded."

One would think the same information exists somewhere on the TSP website....but I haven't found it yet.

Just to follow up...

The TSP site only lists $15,000 for 2006 and thereafter. No mention of $15,500 for 2007, or cost of living increases in the future.

Either the IRS information is pretty new, or over-written by later legislation.

Bottom line....Don't trust me.

Quote from TSP.gov (http://www.tsp.gov/curinfo/plannews.html):

IRS contribution limits for 2007 — For 2007, the IRS permits you to contribute up to $15,500 in tax-deferred money to the TSP. If you will be age 50 or older during 2007, you may contribute up to $5,000 in additional "catch-up" contributions if your regular contributions for the year reach the $15,500 limit.

This is good info... Need to remember to update my contributions by years end. Thanks!

Originally Posted by fabijo

Quote from TSP.gov (http://www.tsp.gov/curinfo/plannews.html):

IRS contribution limits for 2007 — For 2007, the IRS permits you to contribute up to $15,500 in tax-deferred money to the TSP. If you will be age 50 or older during 2007, you may contribute up to $5,000 in additional "catch-up" contributions if your regular contributions for the year reach the $15,500 limit.

Sheesh...I spent 15 minutes searching the TSP site, and couldn't find this!

Thanks!

Originally Posted by ChemEng

This is good info... Need to remember to update my contributions by years end. Thanks!

Thanks eveyone. I wish congress would lift the limit. Now that would really help my account. Anyway, $500/26 should be about $19.54 per pay period. I guess every little bit helps.

Originally Posted by ATCJeff

Thanks eveyone. I wish congress would lift the limit. Now that would really help my account. Anyway, $500/26 should be about $19.54 per pay period. I guess every little bit helps.

I read on some gov website that 2007 will have 27 pay periods, and I adjusted my deductions to match. I can't remember where I saw it, and I haven't seen ANY other discussions yet. Anybody know for sure?

Originally Posted by atcsat64

I read on some gov website that 2007 will have 27 pay periods, and I adjusted my deductions to match. I can't remember where I saw it, and I haven't seen ANY other discussions yet. Anybody know for sure?

Yes, it has been discussed here before, 2007 has 27 Paydays! I thought it might be good for my high 3!

Originally Posted by nnuut

Yes, it has been discussed here before, 2007 has 27 Paydays! I thought it might be good for my high 3!

Wow, didn't even think about high 3. Guess that's one way to get a raise! 3.8% by my calcs

Originally Posted by atcsat64

Wow, didn't even think about high 3. Guess that's one way to get a raise! 3.8% by my calcs

As was discussed earlier, extra pay periods in a month don't help. Your high three is based on your "average" salary during your highest consecutive 36 months of pay.