Not surprisingly, some tax rules are again changing
Readers have likely heard the advice to start saving for retirement as early in their working years as possible. However, the complexities of tax laws do not make that process easier — not to mention that the federal tax laws seem to change annually.
This year is no exception: The Internal Revenue Service recently announced changes to the contribution limitations for pension plans and 401(k) plans. Specifically, the elective deferral limit for 401(k), 403(b) and many 457 plans has been increased to $18,000. The IRS also raised the catch-up contribution for workers who are 50 years of age or older to $6,000. However, the annual IRA contributions remain unchanged at $5,500.