The Internal Revenue Service (IRS) announced it is increasing the amount you can contribute to your workplace retirement plan.
The contribution limit for retirement savings accounts, including 401(k), 403(b) and the majority of 457 plans, has increased to $18,500 from $18,000. The last contribution limit increase was in 2015.
The IRS did not increase the limit for catch-up contributions for individuals over age 50 or contribution limits for traditional and Roth IRA plans.
401(k), 403(b) and most 457 plans
|Catch-up contributions (age 50+)||Additional $6,000||Additional $6,000|
Roth and traditional IRA contribution limits
|Individuals||Up to $5,500 (must have employment compensation)||Up to $5,500 (must have employment compensation)|
|Catch-up contributions (age 50+)||Additional $1,000||Additional $1,000|
Contact your advisor to discover the benefits of increasing your contribution to your employer-sponsored retirement plan in 2018.
Source: Internal Revenue Service, Oct. 19, 2017.
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