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Timi is age fifty-five and earns $46,000 per year, what is the maximum in annual additions...

Timi is age fifty-five and earns $46,000 per year, what is the maximum in annual additions that can be contributed to her qualified 401(k) account this year?

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Answer #1

The 401(k) plan allows savers to contribute up to $19,000 of salary in 2019 to a special account set up by their company.1 Future contribution limits will be adjusted for inflation. In addition, individuals aged 50 and older who participate in a 401(k) plan can take advantage of "catch up" contributions, which permit an additional $6,000 salary deferral contribution in 2019 in addition to the $19,000 limit discussed earlier.

So as per rules $25000 can be contributed to Timi's qualified 401(k) account.

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Thank you in advance

From Mona...

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