How the 401k Investment Plans Can Save for Your Retirement
401k investment plans are a nice way to save money for retirement, but it is important to keep your eyes on the rules on how much you can contribute in a given year. The maximum 401k contribution limits change from one year to the next and apply as one figure for all of your plans, so your total must fall below the limit each year.
The maximum amount allowed to be contributed is different every person, depending on two different numbers. You need to keep in mind that your employer will also probably set a specific limit, such as 10% of your salary. In that case, the actual limit will depend on your salary and will be the lesser (it’s always the lesser, isn’t it?) of 10% or $15,500.
