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

You'll be able to stash an extra $500 in a 401(k) or other employer-sponsored retirement plan in 2018. But the maximum annual IRA contribution will stay the same.

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.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

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.