New figures for retirement savings
Maximum 401(k) contributions have increased by $500 this year, up to $17,500. Older workers born before 1964 can put in as much as $23,000. Those limits are the same for the similar 403(b) and 457 plan, too. For SIMPLE plans, the contribution limit goes up to $12,000, and those over 50 can add $2,500 more.
An employer's contribution to a qualified plan can now be based on as much as $255,000of pay. Anyone making more than $115,000 is considered highly paid, for plan discrimination testing. The benefit limitation for pension plans is $205,000. And it's now easier to switch directly from a 401(k) to a Roth 401(k).
Contribution limits for both IRAs and Roth IRAs go up $500 to $5,500; those born before1964 can add $1,000. The income ceiling for Roth contributions have risen, phasing out at AGIs of $178,800 for couples and $112,000 to $127,000 for singles. Deduction phase outs for regular IRAs are up, too.
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