In 2016,a 48-year-old participant in a 401k)plan may contribute a maximum of:

Question

Quizplus · Accepted Answer

The maximum contribution for a 401k plan in 2016 is $18,000 for those under age 50. Option A ($23,000) is incorrect as it is the maximum contribution limit for those over age 50 who are able to make catch-up contributions. Option B ($12,500) is the maximum contribution limit for a SIMPLE IRA in 2016. Option C ($5,500) is the maximum contribution limit for an IRA in 2016.

In 2016,a 48-Year-Old Participant in a 401k)plan May Contribute a Maximum