401K Contribution Limit for 2018 Increases

“The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500.”

You can read all the details here:



Thanks for the info.


:frowning: IRA limit unchanged again. Oh well, that was expected.

Ugh! One hand gives, while the other seeks to take away. After I started this topic, I came across this:



“Lobbyists and others in the retirement and financial services industries who have spoken to congressional staff and committee members say lawmakers are looking at proposals that would allow 401(k) participants to contribute significantly less than what is currently allowed in a traditional tax-deferred 401(k). An often mentioned amount is $2,400 a year. It isn’t clear whether that would only apply to 401(k)s or IRAs or both.”

“Under some of the proposals being floated, contributions above the amount set for tax-deferred savings would have to go into a Roth account. The change wouldn’t affect existing balances in traditional 401(k)s and IRAs, those people said, and it is likely that any matching contribution from an employer would continue to go into a tax-deferred 401(k) account.”

(Posted also in https://www.fragiledeal.com/t/tax-changes-proposals-discussion/1661/115)


I greatly fear for what may happen if the Rothification (limit pre-tax 401k) plan gets enacted. I think there is a high probability of Roth savers being dinged again with increases of some non-income taxes (i.e. sales, property, etc) once enough $ accumulates into Roth accounts and someone decides to cry “rich savers aren’t paying any taxes on withdrawals!”.


I think it’s way too soon to be worried about that. Yes, it’s a longer term concern IF it passes, but that strikes me as pretty unlikely. First, it’s a big change (which is always hard), second, it discourages retirement savings (which looks bad esp when many don’t save enough), third it likely takes dollars away from the big money managers in company retirement plans (and they have big bucks and good lobbiests). Hold off on your fears for now.


@xerty I hope you’re right.

"A draft tax bill will reduce the cap on 401(k) contributions but not to $2,400 as House Republicans had wanted, ABC News reports.

The bill will lower it to a point halfway between the current limit, which is $18,000 for most people, and the preferred $2,400 that lawmakers wanted."

House Republicans, White House reportedly compromise on reducing 401(k) cap

This will be nuts if it happens. Might then be time to look for a new employer that has mega backdoor available.

Edit: Then again the quote is not complete. I think it’s only looking to lower the pretax? I might actually be OK with that… hmm

Yes, that’s my understanding. I haven’t seen anything about proposed changes to the total contributions allowed.

So, I have a question about this. It is my understanding that 401k withdraws in retirement count as regular income and can lower your Social Security eligibility if the withdraws are too much. Does this apply to Roth equally, or not?

401k withdrawals have nothing to do with Social Security eligibility. Your Social Security payment is based on your taxed earnings during your working years and on when you start collecting it. However, collecting Social Security and making 401k withdrawals together may (very likely will) increase the amount of your Social Security income that is subject to income tax.

This does not apply to Roth. And you could have easily googled both of these.


There doesn’t appear to be any mention of changes to 401Ks/IRAs in the amended version of the House bill.

However, a link to the Senate bill amendments (of which there are 355) does mention changes to them. Specific items of interest are:

Hatch Amendment #2 to Chairman’s mark of “Tax Cuts and Jobs Act.”
Short Title: An amendment to the catch up contribution rules for section 401(k), 403(b) and 457)(b)
retirement savings plans.
Description of Amendment: This amendment would require all catch up contributions to section 401(k),
403(b) and 457(b) retirement savings plans to be Roth only, and increase the $6,000 catch up contribution
annual limit applicable to such plans to $9,000.
Offset: This amendment is expected to raise revenue in the 10-year budget window.

Cantwell Amendment #3 to The Chairman’s Mark of the “Tax Cuts and Jobs Act”
Short Title: Expansion of Retirement Savings Opportunities for Americans
Co-Sponsor: Stabenow
Description of Amendment:

Increase annual pre-tax basis contribution limits for 401(k) plans to $24,000 annually
Allow an additional tax credit for employers equal to a percentage of the employer’s
matching contribution
Employers who do not offer a retirement savings plan would automatically enroll their
workers in payroll deduction contributions to an IRA. Contributions would be set at a
default rate that would escalate after the initial year of participation. Workers would be
able to opt-out of the program and make no contributions, or to select a different savings
rate, and they will be able to choose their investments.
Offset: TBD
[NOTE – Amendment sponsor reserves the right to modify the amendment for technical, revenue
related, germaneness, or other purposes.]
Hatch Amendment #3 to Chairman’s mark of “Tax Cuts and Jobs Act.”
Short Title: An amendment to certain rules relating to Individual Retirement Accounts (IRAs).
Description of Amendment: An amendment to repeal of special rule permitting recharacterization of
Roth IRA contributions as traditional IRA contributions.
Offset: This amendment is expected to raise revenue in the 10-year budget window.

Burr Amendment #4 to the Tax Cuts and Jobs Act
Short Title: 529 financial planning
Description: Under current law, a nonqualified distribution from a 529 college savings account is subject
to a 10% penalty and the distribution is treated as regular. This amendment would allow unused savings
in 529 accounts to be ‘rolled over’ into Roth IRAs. To avoid the 10% penalty, savings must be rolled over
into the Roth IRA of the 529 account owner or beneficiary, and the 529 account must have been opened
for at least 10 years. Rollovers would be treated would be subject to Roth contribution limit.
Offset: TBD
[NOTE – Amendment sponsors reserve the right to modify the amendment for technical, revenue
neutrality, or other purposes.]


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The fakest of fake news

Maybe, but it was being widely publicized at the time. Over a month ago. You’re late to the party.


Non-current news <> fake news

Maybe if you put fake in quotes, and follow the sentence with one word, such as “Sad!”. Apparently then the word can mean whatever you want rather than the actual definition.


Your quote makes it look like I said, “The fakest of fake news”, when I didn’t. :unamused:[quote=“gman476, post:14, topic:1850”]
The fakest of fake news

"In Dictionary.com’s next update, the online reference will add a definition for the term fake news…The entry will read like this:

fake news: false news stories, often of a sensational nature, created to be widely shared online for the purpose of generating ad revenue via web traffic or discrediting a public figure, political movement, company, etc."


Which is what I was referring to.