2018 401(k) and IRA Contribution Limits

By: Clay Sanders

The IRS has announced the 2018 contribution limits for 401(k) plans and IRA’s. The annual 401(k)
contribution limit increased from $18,000 to $18,500 while the catch-up contribution limit remained
unchanged at $6,000, for employees over 50 years of age. The IRA contribution limit and catch-up
contribution limit remained unchanged at $5,500 and $1,000, respectively.

The increase in the 401(k) contribution limit is the first increase since 2015. This increase provides a
great opportunity to increase your retirement savings and also lower your taxable income.