2008 401k Contribution Limits

2008 401k contribution limits are capped at $15,500. However, if you are 50 or over, you have an additional "Catch-up" clause that states you can contribute an additional $5,000 to your limit. This "Catch-up" has nothing to do with how much you contributed in the past, however. So, even if you have contributed the max every year and are 50 or older you are still eligible.

Does my Traditional IRA or Roth IRA affect my 2008 contribution limit?

Nope, you can still have a contribution limit of $15,500 regardless of how much you put in your other IRA.

Keep in mind, Roth IRA have income caps towards making contributions. It starts to phase out at the $116k mark for singles and $169k for married.

Should I make the max contribution to my 401k for 2008?

Maybe, maybe not. If you are the type who wants more control over their investing and cannot contribute the maximum to both an IRA and 401k, then you may want to consider diverting more funds into your IRA, where you have much more control over your investments.

One thing to always consider is how much your company will match your contributions into your 401k. In general, its always best to at least contribute the maximum that your employer will match. It's pretty much just throwing money away if you don't.

What happens once I quit/retire/fired from my company with my 401k?

You can always just leave it in there. However, its probably best to do a rollover of your 401k into another accounts. Generally, a traditional IRA or Roth IRA.

Here is a basic article on rolling over a 401k

Good luck with your investing. Hopefully you are able to contribute the maximum in 2008 towards your 401k.