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401(k) Contribution Limits 2018

The 401(k) contribution limit increased in 2018, to $18,500. Those 50 or older can contribute up to $24,500.
February 27, 2018
401(k), Investing, Retirement Planning
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Because 401(k)s are tax-advantaged, they have a maximum annual contribution limit set by the IRS each year. That limit was increased by $500 in 2018.

401(k) contribution limits for 2018

Age2018 401(k) contribution limit
Under 50 $18,500
50 or older$24,500

Note that the amounts above are the “elective deferral limit” — the amount you, as an employee, are allowed to contribute out of your salary each year. Employer matching dollars do not count toward that limit.

» Planning to max out? Continue saving for retirement in an IRA

The 401(k) also has a total contribution limit, which includes the money you contribute and any employer matching dollars. In 2018, your total 401(k) contributions — from yourself and your employer — cannot exceed $55,000 or 100% of your compensation, whichever is less. That limit rises to $61,000 for those 50 or older.

 

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