2006 401k Contribution Limit
The government-set 2006 401k contribution limit is $15000. For those of you who are over 50 years old, there is also a 2006 401k "catch-up limit" of $5000, which you can contribute in addition to the $15000 limit. If you receive two paychecks per month and you want to contribute the full limit, then you should contribute $625 per paycheck ($15,000/12/2). If you are also contributing the catch-up 401k limit, then you should contribute $833.33 ($20,000/12/2).
It's also important to remember that your company may have set a contribution limit for you. These are usually around 6% of your income. So if you make $80,000 per year your company might only let you contribute $4800 ($80,000 * .06). This converts to $200 per semi-monthly paycheck ($4800/12/2).
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