Roth 401(k) Knowledgebase
COLAs (cost-of-living adjustments)
COLAs (cost-of-living
adjustments) After 2006, the individual 401(k) and catch-up limits increase
based on the annual COLA in minimum increments of
$500.
|
401(k)
Individual Contribution Limits |
2008 |
2009
with COLA* |
2010
with COLA* |
2011
with COLA* |
2012
with COLA* |
|
401(k) Limit |
$15,500 |
$16,000 |
$16,000 |
$16,500 |
$16,500 |
|
Catch-up Limit (age 50 or older) |
$5,000 |
$5,000 |
$5,500 |
$5,500 |
$6,000 |
*Limits shown for 2009-2012 are estimated based on historical increases.
In general, the annual COLA is calculated by comparing the rise in the
Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners
and Clerical Workers (CPI-W) from the third quarter of the prior year to
the corresponding period of the current year.
Example:
401(k) Limit COLA (cost-of-living adjustments)
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