401K Limitations

[Bonnie]

Question concerning the limitations for contributions to a 401K. Under 50 limited to 16,500. After 50 limit goes up to 22,000. What happens in the year the taxpayer turns 50? Does it automatically raise the limit to 22,000 for the entire year? Or is this prorated for the % of the year the taxpayer was 50?

[BP.]

Question concerning the limitations for contributions to a 401K. Under 50 limited to 16,500. After 50 limit goes up to 22,000. What happens in the year the taxpayer turns 50? Does it automatically raise the limit to 22,000 for the entire year? Or is this prorated for the % of the year the taxpayer was 50?

http://www.irs.gov/pub/irs-pdf/p560.pdf

Pub 560- p. 16 -- Says that catch up contributions are available to participants who are age 50 or over at the end of the calendar year.