A 401(k) plan is the most common type of employer-sponsored retirement plan in America. Millions of workers depend on the money that they have saved in this plan to provide for their retirement years. A 401(k) plan is defined as a pretax saving plan done through percentage payroll deductions. The amount of money you can contribute is determine by the IRS.
The 401(k) contribution limit was increased from $18,000 to $18,500 for the calendar year 2018. In the same calendar year any worker turns age 50, they can contribute an additional $6,000 into their 401(k) retirement plan. EXAMPLE: If an employee turning age 50 in 2018 chooses to, they can contribute the additional amount, to get a total of $24,500.00.
To review your 401(k), please go to www.principal.com/individuals.