Limit Increase for 401(k) and Review of Other Financial Changes for 2018
Happy New Year! It’s always good to know what financial changes are happening in the New Year so you can make adjustments to your personal budget. Here is an article discussing some of the financial changes for 2018.
Much of what the article discusses is possible changes in the tax system that has not officially been signed into place. This means that you might have a tax cut, but there is also a possibility you might have a tax increase – not really that helpful until the tax bill is signed.
If the tax bill is signed it would increase the estate tax from $5.4 million exemption to $11 million – great for those inheriting a fortune. I’m not one of those, and neither are most Americans.
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If you’re in retirement or thinking about retirement, social security payments will increase 2.0% for 2018. At least PA salaries are out pacing social security as the most recent AAPA salary reports showed an increase by 5% for PA salaries.
For most of the changes mentioned in the article we don’t know exactly how they are going to affect us. One change that we do know about that can help you save for retirement is the limits for 401(k) contributions. For 2018, the contribution limits will be increasing to $18,500. If you’re currently maxing out your 401(k), know that you will be able to contribute $500 more, compared to 2017. IRA contributions will remain the same at $5,500.
Are any of these changes going to help you out financially? Please comment below on the original article, share with your friends and sign up to receive future posts by email!
