Financial Planning

Posts Tagged ‘2012 401k limits’

The recently increased 2012 401k limits has been somewhat relaxing for a number of people. Though it is a slight increase (only 3 % making it $17000) but it still has been a welcome step for it was somewhat stuck up at $16500 for the past 3 years after the jumping from $15500 to $16500 in 2009. The 403B and 457B plans too will somewhat receive the same increase but the 401K catch-up contribution stays at $5500 for the people over 50 years.

It is very important to mention here that there has never been a decrease in the maximum limits, though in all there have been only six years since it’s on set (1987) which saw no increase but the maximum limit held on. Out of these six years, the three have been which followed economic slowdown. These years, though saw no increase but have been adamant on the increase n the living costs.

The percentage of your salary may be calculated by dividing your total salary with the maximum limit number i.e. 17000 thousand. This will give you the thorough idea in the management of your overall budget.

This much of amount may seem too low for only a few people but there are a number of people who would not even be able to save the maximum and whosoever does that, it can well be among the best things for the financial future.