401k 2018 limit increasing to $18,500

[rennigade]

Not a lot of money by any means but an increase of $500. Shouldnt be too difficult for those already maxing to continue to max.

Roth IRA limits remain the same.


Get ready for the negative nancies who despise 401k's...

[msomnipotent]

I just raised our contribution to 11%, which would have finally had us max out this year. Then I remembered that my husband is in his 50's, so that is $24,500. I guess we will max out next year.

[bjl584]

They need to raise ROTH limits.

I like the freedom to invest that my ROTH gives me as opposed to the limited choices in my 401K

[disneysteve]

They need to raise ROTH limits.

I like the freedom to invest that my ROTH gives me as opposed to the limited choices in my 401K

Plus the fact that only about half of all workers have access to a 401k.

I think that the Roth limit should match the 401k limit at least for those who don't have a 401k available to them.

[phantom]

I keep hoping for $500 more on the IRAs so that I can contribute an even $500/month. Someday...

[Like2Plan]

Not a lot of money by any means but an increase of $500. Shouldnt be too difficult for those already maxing to continue to max.

Roth IRA limits remain the same.


Get ready for the negative nancies who despise 401k's...

Thanks for posting this topic. (I have been waiting for the announcement. )

Also, it looks like they increased the "limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2018 from $54,000 to $55,000." (which does not include catch up contributions http://www.investopedia.com/ask/answ...-415-limit.asp)

https://www.irs.gov/newsroom/irs-announces-2018-pension-plan-limitations-401k-contribution-limit-increases-to-18500-for-2018

[QuarterMillionMan]

I'm 51 but I don't see anywhere in the IRS site where it say over 50 has increased as well (unless I missed it). Currently 50+ can contribute $24,000. So will it be $24,500?

[corn18]

I'm 51 but I don't see anywhere in the IRS site where it say over 50 has increased as well (unless I missed it). Currently 50+ can contribute $24,000. So will it be $24,500?

That's how I read it.

[scfr]

I'm 51 but I don't see anywhere in the IRS site where it say over 50 has increased as well (unless I missed it). Currently 50+ can contribute $24,000. So will it be $24,500?

Sounds right ($18,500 + $6,000). 2 quotes from the IRS press release:

• The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500.
  
  
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

[moneybags]

Plus the fact that only about half of all workers have access to a 401k.

I think that the Roth limit should match the 401k limit at least for those who don't have a 401k available to them.

I have a Simple account through my job. The limits are $12500.00 and $3000.00 catch up. I've had this for years, and it's frustrating that DH has a 401K that has higher limits.

[disneysteve]

I have a Simple account through my job. The limits are $12500.00 and $3000.00 catch up. I've had this for years, and it's frustrating that DH has a 401K that has higher limits.

Exactly. It sucks that how much you are allowed to invest for retirement (in a tax-sheltered plan) is dependent on who you happen to work for.