401K Rules & 401K Limits401 k rules

The 401 k rules that are in place today are created by the Department of Labor and the IRS – not your plan administrator. So do not be too hard on your plan administrator if they deliver a message to you about the 401 k rules that you do not agree with. That administrator is just the messenger. Ask your administrator about the do’s and don’ts of your 401k plan.

 

401k limits

The 401k limits are adjusted by the DOL and the IRS to keep up with inflation. The limits are adjusted every year. For 2009 the 401k limits are $16,500. If you are over age 50, the 401k limits include a catch-up contribution amount of an additional $5500.

Some additional participant services that employers may include in the 401k benefits package are: financial education programs, individual financial planning, enrollment assistance, internet services and participant call centers. Your 401k plan administrator can help direct you to those programs if they are apart of your 401k plan.