You Can Contribute More to Your 401(k) in 2018

published 20 October 2017

Question: How much will I be able to contribute to my 401(k) and IRA in 2018? Also, are the income limits to be eligible to contribute to a Roth IRA increasing?

Answer: You'll be able to contribute a little more to your 401(k) in 2018, but the maximum IRA contribution will stay the same as in 2017. The annual contribution limit for 401(k), 403(b) and 457 plans, as well as the federal government's Thrift Savings Plan, is increasing from $18,000 to $18,500. The catch-up contribution for people age 50 and older will remain at $6,000, bringing their total contribution limit to $24,500 in 2018.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

The income limits to qualify to make Roth IRA contributions will increase slightly. People who file taxes as single or head of household will be able to contribute the full $5,500 (or $6,500 if they're 50 or older) to a Roth IRA in 2018 if their modified adjusted gross income is less than $120,000, and the contribution amount will phase out completely if they earn more than $135,000 (up from $118,000 to $133,000 in 2017). Married couples filing jointly will be able to contribute the full amount if their modified adjusted gross income is less than $189,000, with the amount phasing out above $199,000 (up from $186,000 to $196,000 in 2017).

Topics

Ask Kim

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.