Good news – you can set aside up to $17,000 in total in various kinds of employer-sponsored plans. Please note this individual limit is the maximum amount a person can electively save as deferred salary inside section 401(k), 403(b) or 457 plan.
Senior citizens and individuals age 50 years old or older can also save an additional $5,500 as a designated “catch up” contribution. This brings your total limit to $23,500.00. This is a great opportunity for those who want to fill up the retirement income bucket.
Please note there is a maximum limit on your total contribution to the 401K plan. For the year 2012, that limit is $50,000, meaning your total contribution including you and your employer has to be less than $50,000.
New limitations were announced by the IRS in form IR-2011-103. You can also check out the IRS website for other kinds of retirement plan limitations.
