401k Maximum Contribution Limits for 2010The 401K maximum contribution limits change year after year, based upon the cost of living and expectations of the future. The maximum 401k contribution per year for the year 2010 is $16,500. There is also a catch up benefit for those who are getting closer to retirement. If you are 50 years or older you may contribute an extra $5,500 making your maximum $22,000. You do not have to meet the maximum, but it is advised. In order to meet the maximum you must deposit $1,375 every month. However there are certain circumstances which may also affect how much you can deposit. For example if your employer only allows you to deposit up to 20% of your income and you make $40,000 a year then your 401k yearly maximum contribution would be $8,000 not $16,500. If you do go over this limit then the extra money you have deposited will be withdrawn from your account by April 15 of the next year and you may need to pay extra taxes and penalties on the extra cash. Return from 401k Maximum Contribution Limits for 2009 to 401k information
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