IRA and 401k Maximum
If you're looking to build up a good retirement account for your future you'll want to keep up to date with the IRA and 401k maximum contribution limits. They change most years so you'll want to check in online, or with your financial advisor, annually. The new contribution limits are usually announced in October of the previous year.
The 401k maximum for 2010 is $16,500 for those under 50 years old. For anyone between the ages of 50 and 59 years and 6 months old you also have the option of contributing an additional $5,500 as a catch-up contribution.
The IRA maximum for 2010 is $5,000 for those under 50 years old, with a $1,000 catch up contribution option for those between 50 and 59 years and 6 months old.
People who have been keeping up to date with this information in previous years may notice that the contribution limit from 2009 was the same as these 2010 numbers. Because of the financial problems the United States has been having in recent years our cost of living hasn't increased, and thus they haven't increased these limits.
If you're looking at the numbers for your retirement account of choice and thinking you'd like to save more than that you always have the option of opening another type of retirement account. For instance if you've been focusing on your 401k in recent years, maybe now is the time to look into your options for an IRA (or vice versa). A 401k is an employer sponsored account, and is traditionally made up of contributions from your pretax income (which means you'll be paying taxes on this money when you withdraw from the account in retirement). There are two main types of IRAs (independent retirement accounts), a traditional, which is similar to a 401k except that it is self directed, so you won't be involving your employer, or a Roth account which is made up of contributions from your after tax income (which means you won't be paying taxes when you withdraw this money in retirement).
A popular option is to have a traditional 401k account through your employer, taking advantage of the match from your employer, and a Roth IRA, to mix up your tax obligations in retirement. This has other benefits of note as well-for instance, this helps raise the maximum amount you'll be able to contribute for your retirement each year, and not only does it diversify your tax obligations but it is an opportunity to diversify your investments.
Whether you end up meeting the IRA and 401k maximum contribution limits or not isn't what's most important for your retirement, the fact that you ARE saving for your retirement and checking in on your options every once in a while is the real goal here for your retirement plans. Keep this in mind to keep your retirement planning a low stress activity.