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\u2019s Credit gives an extra incentive to low-income families. If you\u2019re 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. Those yearly income limits are slightly higher than they were last year, so if you\u2019re not above those limits, it might be worth adjusting your 401(k) contribution.
The other change only affects high-income earners. Employers are now allowed to contribute up to $54,000 in matching contributions (up from $53,000 last year). You probably won\u2019t notice this change unless you\u2019re bringing home a pretty hefty salary to start with, though. Check out the post below from personal finance site The Motley Fool for more details on how the changes will affect you.
The 2 Changes to 401(k)s in 2017 You Need to Know | The Motely Fool
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