Super savers and rich people will be able to put even more money in their 401ks next year. Starting in 2015, contribution limits for the tax-deferred retirement accounts will increase by $500 to $18,000, the Internal Revenue Service announced Thursday.
Meanwhile, the “catch-up” amount that workers age 50 and over can contribute to their plans will rise to $6,000 from $5,500, for a total of $24,000 next year.Of course, not many workers can afford to save those maximum amounts. In 2013, 12% of Vanguard’s more than 3 million 401k participants contributed the max allowed not including any match from their employer, according to the company’s annual How America Saves report.
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