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Spinoza
Spinoza asked in Business & FinanceInvesting · 8 years ago

what is the 2012 individual 401K contribution limit?

I am self-employed under a LLC (elected as a corp this year). I know I can contribute up to 17000 as an employee in 2012, and I know as an employer I can contribute up to 25% of compensation, but I am not sure what does the "compensation" mean here. Does it mean the salary I as an employer paid to me as an employee Or the net income I got as a business?

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  • ag318pun
    Lv 7
    8 years ago
    Favorite Answer

    hopefully this link will explain it all for you.

    http://www.ehow.com/how_14015_retirement-self-empl...

  • Ursugardaddy
    Lv 7
    8 years ago

    The 2012 maximum contribution for 401k’s id $17,000. In the year 2013 the maximum contribution for 401(k) would increase from $17000 to $17500.00

    Also Roth IRA limit is 5000 for 2012 but would increase to 5500 for the year 2013

    Take Care

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