A:



That information can be found in Internal Revenue Code Section 402(g). Also see IRS Publication 571.



If an individual participates in multiple retirement plans, the aggregate salary deferral among those plans for the individual cannot exceed $15,000 for 2006, plus catch-up contribution of $5,000.
Individuals are subject to one catch-up limit, regardless of the number of plans in which they participate.



For more insight, see Making Salary Deferral Contributions - Part 1 and Part 2.



This question was answered by Denise Appleby
(Contact Denise)



RELATED FAQS
  1. Am I losing the right to collect spousal Social Security benefits before I collect ...

    The short answer is yes, if you haven't reached age 62 by December 31, 2015. The Bipartisan Budget Act of 2015 disrupted ... Read Full Answer >>
  2. What is the maximum I can receive from my Social Security retirement benefit?

    The maximum monthly Social Security benefit payment for a person retiring in 2016 at full retirement age is $2,639. However, ... Read Full Answer >>
  3. Are target-date retirement funds good investments?

    The main benefit of target-date retirement funds is convenience. If you really don't want to bother with your retirement ... Read Full Answer >>
  4. Will quitting your job hurt your 401(k)?

    Quitting a job doesn't have to impact a 401(k) balance negatively. In fact, it may actually help in the long run. When leaving ... Read Full Answer >>
  5. How does my spousal Social Security benefit work?

    If you have never worked or paid Social Security taxes, you will not be eligible to receive Social Security retirement benefits ... Read Full Answer >>
  6. When can catch-up contributions start?

    Most qualified retirement plans such as 401(k), 403(b) and SIMPLE 401(k) plans, as well as individual retirement accounts ... Read Full Answer >>
Related Articles
  1. Investing

    How To Make Sure Your Healthcare Costs Do Not Ruin Your Retirement

    The best proactive plan of action for a stable retirement is to understand medical costs, plan ahead, invest properly, and consider supplemental insurance.
  2. Investing

    7 Creative Ways to Save for an Early Retirement

    Take note of these out of the box steps you can take towards securing yourself an earlier, more comfortable retirement.
  3. Products and Investments

    Cash Value vs Term Life Insurance: Which is Best?

    The debate between cash value life insurance and term insurance plus an investment plan is an ongoing one. Here's a look at both sides of the argument.
  4. Personal Wealth & Private Banking

    What People Hate About Financial Advisors

    Advisors need to make a living too, but doing so by cutting corners at a client's expense isn't right. Here are the top complaints against advisors.
  5. Mutual Funds & ETFs

    The Top 3 Oakmark Funds for Retirement Diversification in 2016

    Learn about what makes Oakmark Funds desirable for retirement investing. Read about the top three Oakmark funds to research for retirement diversification.
  6. Retirement

    How Medicaid Works After Retirement

    Reasons why, after you retire, you need to know how Medicaid works – and especially how it relates to Medicare.
  7. Your Clients

    Top Tips to Transition into Retirement Confidently

    Here are some of the best ways to make the transition to retirement painless.
  8. Retirement

    When to Fire Your Advisor and Go Robo-Advisor

    Human financial advisor or robo-advisor: Which suits your needs best? Here are some general tips to help guide you to the right professional.
  9. Investing Basics

    When Low Volatility Funds Make Sense for Retirees

    Low volatility investments let you “smooth out” the market's day-to-day or month-to-month choppy waters. But is a smooth ride the best choice for retirees?
  10. Investing Basics

    4 Things That Make a Stock a Risky Bet

    Risk is everywhere and when it comes to stocks it can take many forms. From price risk to volatility risk, there’s a lot investors have to look out for.
RELATED TERMS
  1. Sequence Risk

    The risk of receiving lower or negative returns early in a period ...
  2. Skilled Nursing Facility

    A special facility or part of a hospital that provides services ...
  3. Nursing Home Placement Service

    A business that specializes in helping families and patients ...
  4. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  5. Dynamic Updating

    A method of determining how much to withdraw from retirement ...
  6. Possibility Of Failure (POF) Rates

    The likelihood that a retiree will run out of money prematurely ...
Trading Center