401(k) Contribution Limits Are Increasing for 2018. Here Are 3 Benefits of Funding Yours.
It's official: Come 2018, working Americans will have an even greater opportunity to set aside money for the future. That's because the IRS just announced an increase to the annual contribution limits for 401(k) plans. Though the current annual limit, effective through the end of 2017, is $18,000 for workers under 50, employees starting next year will have the option to contribute an extra $500, for a total of $18,500.
Older workers will also benefit from this increase. Currently, those 50 and over get a $6,000 catch-up provision that raises their annual contribution limit to $24,000. And while the catch-up allowance itself is not increasing, employees 50 and above will get the option to contribute up to $24,500 to their 401(k)s next year.
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Source: Fool.com
