Contribution Limit for 401(k)s Will Rise to $18,500 in 2018

Employees who participate in 401(k) plans and a number of other retirement-savings plans will be able to contribute up to $18,500 in 2018—$500 more than this year’s limit.

The Internal Revenue Service announced the change, along with increases to the income ranges for determining eligibility to make deductible contributions to individual retirement accounts, in a notice (Notice 2017-64) and news release (IR-2017-177) that describe other cost-of-living adjustments related to benefits and contributions under qualified retirement plans.

Notice 2017-64 is scheduled to publish Nov. 6 in Internal Revenue Bulletin 2017-45.