Airline Pilot Forums

Airline Pilot Forums was designed to be a community where working airline pilots can share ideas and information about the aviation field. In the forum you will find information about major and regional airline carriers, career training, interview and job seeker help, finance, and living the airline pilot lifestyle.




View Full Version : 401k max becomes $15,500 on Jan 1


Tech Maven
12-17-2006, 03:24 AM
just a friendly reminder from TM :)

if you are age 50 or older, you may also be eligible to make "catch-up 401k contributions" in addition to your regular 401k limits — IF your employer allows them


Foxcow
12-23-2006, 08:26 PM
What was the previous limit?

learav8r
12-23-2006, 08:26 PM
$15,000 per year for 2006


LAfrequentflyer
12-24-2006, 06:07 AM
15K for 2006.

What about the Roth IRA - has it too been increased in limit? I heard it would be going up to 5K then 6K.

-LAFF

Tech Maven
12-24-2006, 07:58 AM
IRA max for 2007 is $4,000, regardless of whether it's Roth or not. Goes up to $5,000 in 2008. Post-2008, the max will raise in increments of $500 adjusted for cost of living.

LAfrequentflyer
12-24-2006, 08:18 AM
Thanks...I'll have to check with Vanguard...They are reporting it as $4K for 07, $5k for 08.

-LAFF

LAfrequentflyer
12-24-2006, 08:20 AM
I'm talking about under 50...I suspect you have posted the 50 and over #ers.

-LAFF

Tech Maven
12-24-2006, 08:31 AM
you're right, LAf. i corrected the numbers, thanks for the catch!

HSLD
12-24-2006, 09:08 AM
just a friendly reminder from TM :)

if you are age 50 or older, you may also be eligible to make "catch-up 401k contributions" in addition to your regular 401k limits IF your employer allows them


Good post - ALWAYS pay yourself first!

I base Pre-Tax 401K payments on the monthly guarantee and then figure out the percentage required to achieve the 401K limit. Since I always fly more than guarantee, I reach the threshold by the end of November. This leaves a nice little bump in the December paycheck for Christmas or whatever.

By the end of the year - I've maxed the 401K and have a little extra for "the season". Best of all, the 401K contribution comes out of pre-tax dollars so the federal tax liability is reduced and that means paying LESS tax.

Another benefit to look at is Medical and Child care flex-spending, using this you can reduce taxable income by another $5000 per year (depending on your plan).

Here's to prosperity to everyone on the boards in 2007, and paying yourself is a good head start!

Worldguy
12-28-2006, 04:26 PM
I try to hit max as soon as feasible, the sooner your hit the max in the year the more time that money is hopefully compounding.