401(k) Limits Increased for 2018… Apparently.

According to the IRS, the annual 401(k) contribution limit will increase in 2018 by $500 to $18,500.

The catch-up contribution available to those 50 or older will stay the same at $6,000 for a total allowable contribution of $24,500.

But the announcement from the IRS on Thursday has been followed by rumors that Congressional tax reform could limit pre-tax 401(k) contributions to a mere $2,400 a year.  Stay tuned – and consider maximizing your 2017 contribution while you still can.