Age
40
45
50
55
60
Max. Annual Tax defer Contribution $33,000
$52,000
$78,000
$93,000
$125,000
| A 401(k) plan is a profit sharing plan that allows elective contributions ($10,500 maximum for 2001) from employees. Employees contribute to the plan by making salary reductions from their paychecks. The plan is very popular with employees because it gives them an efficient tax-advantaged way to control their own retirement. Employers may also contribute on behalf of employees. An employer may choose to "match" an employee contribution. This is often done to encourage participation in the plan. ...... Info request |
