Each Wednesday 401kBasics posts a new article in a weekly series called “Keep the Course”. This series is designed to give the average consumer information on how to keep their 401k plan on track! Your feedback or suggestions on future articles is welcome.
Over the next few weeks, 401kBasics will feature some of the most commonly asked questions, the first of which is:
“Is there a limit on the number of 401(k) plans I can have?”
While there is no limit on the number of 401(k) accounts you can have, there is a limit on how much you can contribute to them on an annual basis. For the 2011 year, you cannot defer more than $16,500 in pre-tax and/or Roth contributions to all of your 401(k) accounts combined. If you’re over 50 years old, then depending on your plan provisions, you may be able to defer an additional $5,500 in what is known as Catch-up contributions.
Keep in mind of course, that the more 401(k) accounts you have, the more difficult, and potentially costly, it will be to maintain them. You should consider rolling them all into one account.
This site is for entertainment purposes only. 401kBasics and it’s authors are not financial advisors and no information found on this site should be construed as financial advice.
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