It depends. A question such as this requires detailed information in order to provide a helpful response. Here is a general response that may be of help.

Questions: Are any of these companies related or affiliated? For instance, are they owned by the same people? Do you own any of the companies? Are any of the companies part of a parent company? Do any of the companies share resources, staff etc? If the answer is yes to any of these questions, the answer may change from what is provided below. If the answer is no, then the limit is as follows:

Employer Plans
Your aggregate salary deferral contributions cannot exceed $14,000 (plus an additional $4,000 if you reach at least age 50 by December 31, 2005). This means that you can break up the $14,000 among the plans, but your total salary deferrals should not be more than $14,000.

In addition, you may receive employer contributions (contributions from your employer, such as profit sharing and matching contributions) to each plan to the tune of $42,000. However, the $42,000 is reduced by any salary deferral contributions made to the plan. For instance, if you defer $10,000 to one plan, your employer may contribute no more than $32,000 for 2005 (total $42,000). Of course, your contributions are determined by your compensation. For instance, if your employer decides to contribute 25% of your compensation to the plan, and you receive $50,000 in wages, then the employer contribution will be $12,500.

Regardless of the number of IRAs you own, whether Roth and Traditional, or either one or the other, your aggregate IRA contribution for 2005 is limited to $4,000, plus an additional $500 if you reach age 50 by December 31, 2005.

As I mentioned earlier, detailed information, including compensation received from each employer and answers to the questions listed earlier would be required in order to provide a definite response.

To learn more, see Making Salary Deferral Contributions - Part 1 and Part 2.

This question was answered by Denise Appleby
Contact Denise)

  1. Can you have a 403(b) and also contribute to a 401(k)?

    Yes. You may participate in both a 403(b) and a 401(k) plan. However, certain restrictions may apply to the amount you can ... Read Answer >>
  2. The company I am working for said that 401(k) contribution can be based on only straight ...

    The regulation (law) that addresses your specific question has not changed. However, both employers may be right. Here's ... Read Answer >>
  3. My husband has become eligible for a 401(k) plan (with no matching contribution) ...

    Your husband's employer should check the retirement plan box on line 13 of the 2005 Form W-2 only if your husband elects ... Read Answer >>
Related Articles
  1. Retirement

    401(k) Contribution Limits in 2016

    Find out what the contribution limits are for 401(k) retirement savings plans in 2016, including individual, employer and aggregate limits.
  2. Retirement

    How To Save More For Your Retirement

    The Economic Growth and Tax Relief Reconciliation Act of 2001 made it easier to prepare for the future. Will you be ready?
  3. Retirement

    Why are 401(k) contributions limited?

    Find out why contributions to 401(k) retirement plans are limited, including what the current contribution limits are and how limits encourage participation.
  4. Small Business

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  5. Retirement

    IRA Contributions: Eligibility And Deadlines

    Use this checklist for contribution requirements to make your payments on time.
  1. Savings Incentive Match Plan For Employees Of Small Employers - SIMPLE

    A retirement plan that may be established by employers, including ...
  2. Unit Benefit Formula

    A method of calculating an employer's contribution to an employee's ...
  3. Retirement Contribution

    A monetary contribution to a retirement plan. Retirement contributions ...
  4. Employee Contribution Plan

    A company-sponsored retirement plan where employees may elect ...
  5. 457 Plan

    A non-qualified, deferred compensation plan established by state ...
  6. Additional Voluntary Contribution – AVC

    An extra allocation of funds to a retirement savings account ...
Hot Definitions
  1. Wealth Management

    A high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning ...
  2. Assets Under Management - AUM

    The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked ...
  3. Subprime Auto Loan

    A type of auto loan approved for people with substandard credit scores or limited credit histories. There is no official ...
  4. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  5. Federal Debt

    The total amount of money that the United States federal government owes to creditors. The government's creditors include ...
  6. Passive Management

    A style of management associated with mutual and exchange-traded funds (ETF) where a fund's portfolio mirrors a market index. ...
Trading Center