403(b) Plan Contribution Limits in 2018
Most workers have heard of 401(k) plans and their usefulness in saving toward retirement, but there are other tax-favored retirement savings vehicles that are available to certain employees. For those who work in the education or medical professions as well as for nonprofit organizations, many employers offer 403(b) plans to their workers.
403(b) plans are similar in many ways to 401(k)s, and one thing they share in common is the ability to make large contributions toward retirement. In 2018, the amount that those who are under age 50 can contribute to a 403(b) will rise by $500 to $18,500, and those who are 50 or older will get a $500 boost as well to $24,500. In addition, some employers integrate into their plans an additional catch-up contribution option that allows those who've had 15 years or more of service with the organization to make an additional $3,000 in contributions annually. Let's look more closely at 403(b) plans to see how those who have access to these plans can put them to maximum advantage.
Image source: Getty Images.
Source: Fool.com
