Retirement Contributions Won’t Change in 2010
October 16, 2009 by Stephen Kersey
Filed under Finance
The IRS has stated that the maximum contribution limits to your 401(k) and other retirement plans will not change from their current levels in 2010. According to a statement released by the IRS yesterday, the maximum contribution rate will stay at $16,500 instead of being lowered, as many had predicted.
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A lower contribution limit might have sent the wrong signal to many Americans that already do not invest enough money for retirement. Whether or not the IRS wanted to change limits, though, it stated that procedures in the Social Security Act for adjusting the limits do not allow it to change anything.
Despite the conditions that may have resulted in a lower contribution limit, it is important that workers realize that they should invest money into their retirement accounts more than ever. The time period in which the market is recovering is the most important time to save for retirement because workers that do not save will be left behind the market.
