How 401(k) plans will change next year
The IRS announced recently that 401(k) contribution limits will increase by $500 per year beginning in January. That means that in 2018, employees who participate in the employer-sponsored program can put in as much as $18,500 per year, up from $18,000 the year before. The savings could eventually add up to more than $70,000 extra for retirement if you begin saving by 30, reports CNBC. For recent hurricane survivors, emergency withdrawals of up to $50,000 will be allowed via hardship distributions to pay for storm-related damages until Jan. 31, 2018. The 401(k) was recently in the spotlight after there was speculation that President Trump would scale back the program to pay for tax cuts — something he has denied considering as part of his reform plan, according to Reuters.