401k Catch Up Contributions for 2010

For individuals saving for retirement, the maximum amount an individual may contribute to their 401k is $16,500. However pre retires, people 50 years or older may contribute up to $22,000 to their company 401k. In addition they are not restricted to what percentage of their income they would like to contribute. This is a perfect scenario for seeing the weakness of using a retirement planning calculator compared to a professional financial planning software like Execplan Express that can calculate the tax advantages of additional contributions to a 401k.