Every year, the contribution limits and other details about 401(k)s change. A few of those changes this year can be particularly useful for low-income families. Here are the changes to watch for.
First, the contribution limit is still set at $18,000. That part remains unchanged. However, the Saver’s Credit gives an extra incentive to low-income families. If you’re making less than $31,000 a year as a single person, or $62,000 as a married couple filing jointly, you can qualify for a credit on anywhere from 10% to 50% of the first $2,000 you contribute per person to your plans.
