As of 2015, contributions to 401(k) plans are limited to $18,000, according to taxes.about.com. Taxpayers 50 years of age and older are permitted an additional catch-up contribution up to $6,000.Continue Reading
The 2015 contribution threshold is $500 more than the previous annual limit, and applies to any 401(k) accounts the taxpayer has open during the current year, explain experts at taxes.about.com. The elective salary deferral is accounted for separately from the matching contributions of employers, and may be placed into a post-tax Roth 401(k) account, tax-deferred traditional 401(k) account or combination of the two -as long as the total does not exceed the maximum, according to taxes.about.com.
To avoid exceeding the limit, taxpayers working two or more jobs and those switching jobs in the middle of the year are advised to track their 401(k) contributions.Learn more about Financial Planning