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Personal Finance Q&A: Caps on 401(k) contributions can vary
Personal Finance Q&A: Caps on 401(k) contributions can vary

Dear Liz: I understand that anybody with a 401(k) can contribute up to $18,000. Does the amount you can contribute depend on your salary? Say you make $45,000. Therefore I would assume you could put in the full $18,000, or 40% of your salary. Am I wrong? Answer: The maximum the IRS allows someone under 50 to contribute to a 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan is $18,000 in 2015. The additional "catch up" contribution limit for people 50 and older is $6,000. The plans themselves, though, may impose lower limits. Even if the plan doesn't cap contributions, your contributions may be limited if you're considered a...

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