The Internal Revenue Service announced last month the 401(k) contribution limit is set to rise by $500 in 2018 – increasing the cap from $18,000 to $18,500 and from $24,000 to $24,500 for workers over age 50.
They also announced that the per person gift exclusion will rise from $14,000 to $15,000. Couples will be allowed to give up to $30,000 to an individual or 529 Plan, without needing to file a Form 709: U.S. Gift Tax Return or eating into their $5.49 million lifetime exemption amount.
The income eligibility for a Roth IRA will also rise slightly, though the max contribution will stay the same ($5,500 / $6,500 over 50).
Full announcement details, including other changes, here.
