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Q: 401K Historical Chart ( Answered 5 out of 5 stars,   0 Comments )
Subject: 401K Historical Chart
Category: Business and Money > Finance
Asked by: beauregard-ga
List Price: $20.00
Posted: 16 Dec 2004 06:32 PST
Expires: 15 Jan 2005 06:32 PST
Question ID: 443399
I would like to see a historical chart showing the maximum amount of
money that the IRS allowed in 401K accounts. I think 401Ks started in
the mid to late 80's and I'd like to see every year since inception of
the program.
Subject: Re: 401K Historical Chart
Answered By: richard-ga on 17 Dec 2004 16:13 PST
Rated:5 out of 5 stars
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

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

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

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.

Google Answers Researcher
beauregard-ga rated this answer:5 out of 5 stars and gave an additional tip of: $5.00
Richard:  Thank you very much. This is exactly the information I
needed. I appreciate your time.

There are no comments at this time.

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