George F. Maruska, CPA

CookCountyNewsHerald Grand Marais, MN HIGHER LIMITS ON 401(K)S The Internal Revenue Service has increased the maximum annual contribution that employees can make to a 401(k) plan this year. The new tax-deferred limit is $17,000, $500 more than last year, the first inflation-related raise since 2009. Across the country, there are some 60 million participants in 401(k) plans, and about 5 percent of them contribute the maximum amount. Another 5 percent say they would if their companies permitted them to. In 2009, 33 percent of workers age 21 to 64 used 401(k) plans, according to the Employee Benefit Research Institute. Companies who set up the plans can limit the maximum contribution at lower levels, but few do. Some have kept limits from old plans, though, that capped contributions at 15 percent of the employee’s salary. In addition, many companies limit the 401(k) contributions of highly paid executives to comply with IRS rules. We help businesses keep their benefit plans up-to-date. Talk to the tax experts at GEORGE F. MARUSKA LTD. Certified PubliC ACCountAnt 121 1st Avenue West Grand Marais, MN 55604 218-387-1180 98 Outer Drive Silver Bay, MN 55614 218-226-4594 It’s Your Money GEORGE MARUSKA, CPA <pagedata>3:0.334182769:0.32845211:0.691821694:-0.00127713918</pagedata>