If, like most American workers, you participate in your employer’s retirement plan, you’ll want to know that the amount you can stash away is set to climb in 2018.
The new limits affect contributions to 401(k), 403(b) and 457 plans.
Next year, you can contribute $18,500 to your 401(k) — up $500 from 2017.
If you’re age 50 or over in 2018, you can contribute $24,500 — also up $500.
Make sure you tell your employer to INCREASE your contributions starting January 1.
Your own contributions to the plan are always fully vested (meaning you keep the money even if you leave your job). And many plans give you the choice between traditional 401(k) contributions, which are tax-deductible and reduce your tax bill, or Roth 401(k) contributions, which give you no immediate tax deduction but grow free of tax (probably a better option for younger workers).
Whichever plan you prefer, make sure to contribute. You’ll never end up with millions if you don’t get that first dollar into the plan!