Expert: Allen - 9/28/2006

Question
If my company has a pension plan can I also contribute to a 401K that my comapny offers and if so are the max limits still the same.

Answer
The answer to your question depends on the type of pension plan.

If it's a defined benefit pension, then you can contribute up to $15,000 if you were born after 1956 or $20,000 if you were born before 1957.

If its a profit sharing plan or a money purchase pension plan, then the total amount contributed the company for you plus the amount contributed by you can't exceed $44,000 if you were born after 1956 or $49,000 if you were born before 1957. In addition the amount contributed by you can't exceed the $15,000 or $20,000 mention above.