Alpha Omega offers a full line of 401K options. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) increases opportunities for individuals to save for retirement. Many of these opportunities began in 2002 and phase in over a number of years. Below is a list of some of the major changes affecting retirement savings.
Increased 401(k) Contribution Limits
Employees were limited to a maximum of $10,500 (for the 2001 calendar year) in employee pre-tax elective deferrals under 401(k) plans.
New Law Effective 2002
The maximum elective deferral increased to $15,000 as follows:
2002 – $11,000
2003 – $12,000
2004 – $13,000
2005 – $14,000
2006 – $15,000
After 2006, the maximum deferral amount is indexed in $500 increments.
Loans for “Owner-Employees”
Loans are not available for “owner-employees.” An “owner-employee” is a self-employed individual, a partner with a 10% or more ownership interest in the partnership, or a 5% or more shareholder of a Subchapter S corporation.
Loans are available to “owner-employees,” effective for plan loans made after December 31, 2001.
For more information, please call 281-897-9393 or send your inquiry using our online form.