Where can I find information on multiple annual additions for someone employed by more than one unaffiliated company?

By Denise Appleby AAA
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. What type of investor should consider annuities?

    Learn about the features and benefits of annuities and when to consider one. Investors seeking to secure income for retirement ...
  2. How does the invisible hand phenomenon affect investment markets?

    Read about how the invisible hand of the market coordinates investment markets and provides social benefit and why its effects ...
  3. What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase ...
  4. Are dividends the best way to make money for retirement?

    Using dividends for retirement income can provide a hedge against a variety of risks, but investors need to be aware of the ...
RELATED TERMS
  1. Variable Annuitization

    An annuity option in which the amount of income payments received ...
  2. Gold IRA

    Definition of Gold IRA
  3. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all ...
  4. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  5. To Fund

    A type of target-date retirement fund whose asset allocation ...
  6. Through Fund

    A type of target-date retirement fund whose asset allocation ...

You May Also Like

Related Articles
  1. Retirement

    Read This Before You Retire In The Philippines

  2. Professionals

    4 Steps to a Happy Retirement

  3. Professionals

    Just Retired? No Better Time for a Second ...

  4. Professionals

    When Your Client's Retirement is Around ...

  5. Professionals

    A New Wake-up Call for Savers

Trading Center