Hello and thank you for your question.
The limit that applies to 401k accounts is a contribution limit - -
the account itself can grow to whatever value your skills as an
investor allow you to achieve.
First of all, one rule has been the same throughout the history of 401k plans:
Your 401(k) contribution can't exceed more than 25% of pay.
401(k) Plan Contribution Limits
http://www.fool.com/retirement/retireeport/2001/retireeport010423.htm
So we'll have to assume that there's sufficient compensation each year
that the 25% limit is not a problem.
Also, since 2002, people age 50 and above can make additional
so-called catch-up contributions to a 401(k) plan. Under the catch-up
contribution provisions (you're not really catching up to anything - -
the rule is the same whatever you've done in the past), they can
contribute an additional
$2,000 in 2003,
$3,000 in 2004, and
$4,000 in 2005
How a 401(k) Works
http://www.finance.cch.com/text/c40s10d040.asp
Subject to the 25% limit and not counting the catch-up contribution
allowance, here are the figures:
2006 $15,000
2005 $14,000
2004 $13,000
2003 $12,000
2002 $11,000
2001 $10,500
2000 $10,500
1999 $10,000
1998 $10,000
1997 $ 9,500
1996 $ 9,500
1995 $ 9,240
1994 $ 9,240
1993 $ 8,994
1992 $ 8,728
1991 $ 8,475
1990 $ 7,979
1989 $ 7,627
1988 $ 7,313
1987 $ 7,000
Key Maximums
http://www.mellon.com/hris/educate/publications/key_indicators_links/keymaximums.html
Search terms used:
"401(k)" "dollar limit"
"401(k) contribution limit"
"401(k)" "dollar limit" table 1999
Thanks for bringing us your question. If you require any
clarification, please hold off on rating my answer until I have a
chance to reply.
Sincerely,
Google Answers Researcher
Richard-ga |