Roth ira works for some $.

Get humping on the 401k, expecially if there's an employer match. Talk to
your plan admin....


<the_cacc[at]hotmail.com> wrote in message
news:1106763391.883319.293920[at]f14g2000cwb.googlegroups.com...
- quote -

Tad Borek wrote:
- quote -

Thanks Tad, appreciate your answer. I'm in my 20s and just started
looking into this stuff. Basically I started a job 18 months ago
getting $60k a year and have ended up with $30k sitting in my checking
account... getting 0% interest! (I know, don't shout at me

So, I was really hoping to dump 2 lots of $14k in my 401k ASAP - one
for 2004 and one for 2005. But it looks like I missed the 2004 boat. I
guess I ought to get a Roth IRA as well - although it's only got a
$3000 limit on. I've got no plans to buy a house since I may be moving
around for my job. I wonder if you can suggest anything?

the_cacc[at]hotmail.com wrote:
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"Simple question" and "401k" never fit in the same sentence. =)

The simple answer is "calendar year."

Nits:

You said $14k, which is correct for 2005, but the limit was $13k in 2004
and will be $15k in 2005. If you're 50 at the end of any of these years,
there's an allowance for catch-up contributions (an extra 3,4,$5k over
these three years).

If you changed jobs or have more than one during a calendar year, the
total applies across all plan contributions, in aggregate. There's no
2X$14k for two jobs, it's just $14k max.

These numbers are the salary deferral limits, the limits on what you
have taken out of your paycheck. Your employer match doesn't count
against these limits so total annual contribution can be higher.

For a variety of reasons it's possible you won't be able to contribute
the full $14k allowed - due to plan restrictions. For example the plan
might set a percentage limit on contributions, like 15%, and that
doesn't get you to $14k. Or you're a higher-earner at the company and
need to have your contribution cut back so the plan meets some IRS rules
on participation.

But aside from all that, the answer is "December 31".

-Tad

Apologies for this simple question... it's all new to me. I know I'm
allowed to put $14k a year in my 401k plan. But when does the "year"
start/end?

Thank you.