Understanding the 401 k Contribution Maximum Limits and Updates

401 k Contribution Maximum Limits

401 k Contribution Maximum Limits

The 401 k contribution maximum limits remain as one of the most important facts to learn about the retirement plan. More and more retirement investors prefer the Solo 401 k retirement account. There are various advantages to establishing the retirement plan especially for wealth building. You can see your retirement money grow and prosper without the usual limitation of conventional accounts.

About the 401 k Contribution Maximum Limits

According to the Qualified plan 401 k experts, the 401 k plan for small business owners offers one of the highest contribution limits. For instance, the traditional IRA accounts only allow a maximum of $5,500 for their annual contribution. The catch up contribution for the conventional IRA plans is only $1,000 for age-qualified participants. The 401 k contribution maximum limits offer almost 10 times higher these traditional plans. The yearly allowable amount that participants can contribute is up to $59,000. The value is for the combined salary deferral and profit sharing contribution.

Remarkable Retirement Savings Upfront

The updated amount for the 401 k contribution maximum limits also shows that the catch up contribution for plan participants is $6,000. This is an allowed amount for participants that are 50 years old and older. The bigger the maximum contribution limit, the bigger your retirement savings and funds will be. That is just one of the best features of the Individual k retirement account.

About the 401k Checkbook Control

On top of the high 401 k contribution maximum limits, plan participants also commend the Checkbook Control feature. The plan owner becomes the plan trustee. This means that you have total control and access of your plan assets. There is no need for a custodian consent and related custodian fees and charges to access your money. Plan participants can actually invest their retirement funds in almost any asset. Moreover, there are no lengthy and hefty documents needed in order to do so. You can use your retirement funds and invest them on allowed transactions. Investing your retirement money is as easy as writing a check.

It takes a lot of research and work to finally make a good retirement investment. The 401k retirement account is no doubt one of the most lucrative ventures. Learn more about this type of retirement investment to get the most out of your retirement savings. The best place to start is to know the 401 k contribution maximum limits.

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