401k Contribution and Catch up Limits

Another year same question - what are the 401k contribution limits for 2010?

If we compare them to 2009 - nothing changes. They stay the same. So just to remind you - for both 2009 and 2010 contribution limits are $16,500. It's good to remember that limits are strictly related to cost of living.

Since in 2009 cost of living has decreased it was really possible that 401k limits will decrease as well. For some reason - it did not happen.

What about catchup contributions? - If you've started your thoughts about your old years little bit late (say after age of 50) - you have a chance to speedup your process (contribution limit in this case is $22,000) - Catchup means extra $5,500.

One more thing - always remember about deadlines!

401k - Few other options

Of course there are other ways to think about your retirement except 401k, Roth IRA, SEP IRA etc.

    Here are a few tips:
  • think about the future
  • observe the changing world
  • try to forcast the future and based on this make your decisions regarding long term investments
  • don't be lazy; most of the individual investors loose their money in stock; That's why it's sometimes better to work harder on something what's real and is only yours
  • once you find your spot-have it done (buy land, buy a shop, buy something what has REAL value)

If you have something what has REAL value you can simply stop worrying about your old times - you can always sell it - Simple as that. Of course treat it as a little bit humorous part but there's lots of truth in it. And yes - 401k contribution limits are important as well.

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