2008 401k cont. limits...stay the same at 15,500

[maddythebeagle]

About.com: http://www.irs.gov/newsroom/article/0,,id=174873,00.html

I dont recall this being discussed but was wondering about adjusting in jan. but stay the same.

IRA limit goes to 5000, though....

[Want2retire]

Originally Posted by maddythebeagle

About.com: http://www.irs.gov/newsroom/article/0,,id=174873,00.html

I dont recall this being discussed but was wondering about adjusting in jan. but stay the same.

IRA limit goes to 5000, though....

I must be too tired - - I don't see where that article says that about IRA's. Did I just not see it? Or, is there some other place on the IRS website where it states what the 2008 Roth IRA contribution limit is? I googled it and found several other sources that say it will be $5,000, but I did not see it on the IRS website itself.

[maddythebeagle]

I think the 5000 bump on IRA cont. limit was set in stone while the increase in 401k contribution is based on inflation and looked at annually= why not mentioned in this...

[Want2retire]

Originally Posted by maddythebeagle

I think the 5000 bump on IRA cont. limit was set in stone while the increase in 401k contribution is based on inflation and looked at annually= why not mentioned in this...

Well, if I was in charge of the IRS website, I'd put information like that someplace easier to find!! But I'm not, so I'll just bumble along... Thanks.

[jblack]

Argh, I was hoping 401k limits would bump up to $16k next year. Grrrrr...

[dessert]

Originally Posted by jblack

Argh, I was hoping 401k limits would bump up to $16k next year. Grrrrr...

I'm with you on that one.
What the heck, I wish they would bump up to 20K!

Seriously though, I thought they would increase too. I guess we just don't get any sympathy special treatment from the lawmakers because we LBYM and don't need bailing out.

[martyb]

Originally Posted by jblack

Argh, I was hoping 401k limits would bump up to $16k next year. Grrrrr...

With the 15.5K regular limits plus the 5K catch-up that I'm starting in January 08, I think I'll be about maxed out, more ways than one! My intention is to also max ROTH IRAs for both of us, as well as the DW doing her best to load up her own 401k. Gonna be a serious LBYM year for us.

[Want2retire]

Originally Posted by martyb

With the 15.5K regular limits plus the 5K catch-up that I'm starting in January 08, I think I'll be about maxed out, more ways than one! My intention is to also max ROTH IRAs for both of us, as well as the DW doing her best to load up her own 401k. Gonna be a serious LBYM year for us.

I have maxed out my TSP(401K) and catchup for the past 8 years. At first it was a percentage, and through 2003, my contributions were considerably less than $10K, even including catch-up, though I would have contributed many times more had it been permitted. I think it was in 2006 that the contribution limit went from a percentage up to $15K + $5K catchup. That represented a huge increase in my contributions. Despite my cost of living increase, my take-home pay was a lot less that year!

This year, there will be no increase allowed for my TSP contributions. My cost of living increase and step increase will still give me a hefty increase in take-home pay, even after subtracting out enough to max out my Roth IRA contribution and over-50 catchup there too, again.

I wish I had had the opportunity to contribute more! Even more, I wish that I had a humungous pension in store for me like in the old days (I have one coming, but it will be really, really tiny).

[TickTock]

Originally Posted by dessert

I'm with you on that one.
What the heck, I wish they would bump up to 20K!

401(k) limit increases are tied to inflation.

[jblack]

Originally Posted by TickTock

401(k) limit increases are tied to inflation.

Does that mean we had 0% inflation over the past 12 months?

[maddythebeagle]

No, inflation was more than 0% last year, but the Cola number wasnt enough (another discussion in itself) to bounce the limit up an even 500 bucks and I think they are looking to go up in even increments....hey, its the federal government...I would prefer to take the "catch up" now since most likely will be retired in my 50s....

Fidelity: Contribution Limits

Yep, they are going in 500 increments so next year probably will at least 500 adding in the inflation from 2 years....

[martyb]

Originally Posted by Want2retire

I have maxed out my TSP(401K) and catchup for the past 8 years. At first it was a percentage, and through 2003, my contributions were considerably less than $10K, even including catch-up, though I would have contributed many times more had it been permitted. I think it was in 2006 that the contribution limit went from a percentage up to $15K + $5K catchup. That represented a huge increase in my contributions. Despite my cost of living increase, my take-home pay was a lot less that year!

This year, there will be no increase allowed for my TSP contributions. My cost of living increase and step increase will still give me a hefty increase in take-home pay, even after subtracting out enough to max out my Roth IRA contribution and over-50 catchup there too, again.

I wish I had had the opportunity to contribute more! Even more, I wish that I had a humungous pension in store for me like in the old days (I have one coming, but it will be really, really tiny).

I'm under the old CSRS system, and my pension will be 68% of my high-three when I retire in 5 years. I'm stepped out, so no more step increases for me. Only annual raises. I'm not on the GS pay scale, I'm a WG employee. A WG-11 to be exact and so that means that $20,500 is a pretty large percentage of my $54K gross pay. I maxed this year, but I won't be 50 until January so no catch-ups yet. I'll do max + catch-ups from here on through retirement, though. With my reserve pay for 2007, I'll have earned about 70K altogether. DW only makes about $21K per year, so yep, money is getting tight. I have a big "master plan" I'm about to implement, though that will help us save for retirement at a much faster pace. I need to run it by you folks here, just need to post it I guess for some feedback. It involves selling the current house, downsizing & paying cash for a lesser cost place that we'll only live in till retirement, then buying our actual after-retirement house with cash from retirement savings. I'll explain better in a different post, and my reasoning. By the way, although I only started maxing the TSP in '07, I have been contributing at least some for several years. I haven't broken 100K yet, though. Should be in '08, though.