401(k) limits to change for 2018

401k Contribution
A 401(k) is a good way to save for retirement because your money grows tax-free.

The government will raise the contribution limit to $18,500 from $18,000 in 2018.

Those age 50 and older can save even more by making what’s called a “catch-up” contribution. The catch-up contribution is limited to $6,000 a year, for a total of $24,500.

These limits don’t include the matching contribution you may receive from your employer.

They also apply to 403(b) plans and the federal government’s Thrift Savings Plan.

The New Year is a great opportunity to meet with your tax professional and begin planning to meet your tax goals.

Call Darshi Kasotia, CPA today at 832 532 3000 or Contact Us online now.