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Subject: 401k Contribution Limits


Author:
401K Expert
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Date Posted: 05:41:28 07/05/05 Tue

Allowable elective deferrals for 401k plans in 2004 have increased to $13,000 per year, up $1,000 from 2003's $12,000 limit. Current law governing 401k plans, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), provides for growth of the annual limit to match cost-of-living increases. Specifically, the limitations are set to grow by $1,000 until 2006, when the contribution limit reaches $15,000.

More details on 401k maximum contributions and related retirement plans, can be found in Internal Revenue Bulletin 2003-45 released by the IRS on November 10, 2003.

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