Save More for Retirement in 2018: Unveiling the Increased 401k Contribution Limits!

Are you looking to ramp up your retirement savings in 2018? Great news! The IRS has increased the contribution limits for 401k plans for the tax year, allowing you to sock away more money towards your golden years. This change presents a fantastic opportunity to boost your retirement nest egg and secure your financial future.

Here's a breakdown of the new contribution limits and how they can benefit your business and your employees.

Understanding the New 401k Contribution Limits

The Internal Revenue Service (IRS) periodically adjusts contribution limits for retirement savings plans to account for inflation. For 2018, the IRS increased the contribution limit for employee elective deferrals to 401(k), 403(b), and most 457 plans to $18,500. This represents a $500 increase from the previous year's limit of $18,000.

Additionally, employees aged 50 and over by the end of the year can take advantage of catch-up contributions of up to $6,000, bringing their total contribution limit to a significant $24,500.

Increased Contribution Limits: A Win-Win for Businesses and Employees

The increased contribution limits offer a win-win situation for both businesses and employees. Here's how:

• Enhanced Employee Benefits: By offering a 401k plan with generous contribution limits, businesses can attract and retain top talent. A robust retirement savings program demonstrates your commitment to employee well-being and financial security, which is a major consideration for many job seekers according to a Society for Human Resource Management (SHRM) survey.

• Improved Employee Morale and Loyalty: Employees who feel secure about their future are more likely to be engaged, productive, and loyal to their employers. A strong 401k plan with increased contribution options fosters a sense of security and can significantly boost employee morale.

• Tax Advantages: Contributions made to a 401k plan are typically tax-deductible, which reduces your company's taxable income. This translates to significant tax savings for your business.

Success Stories: How Businesses Leverage Increased Contribution Limits

Many businesses have successfully leveraged increased contribution limits to attract and retain top talent. Here's an example:

• A tech startup in Silicon Valley implemented a 401k plan with a generous company match and highlighted the increased contribution limits during their recruitment drive. This strategy helped them attract highly qualified candidates who were impressed by the company's commitment to employee financial wellness.

Take Action Today: Empower Your Employees and Strengthen Your Business

Don't miss out on the opportunity to leverage the increased 401k contribution limits for 2018. By offering a competitive 401k plan with generous contribution options, you can significantly enhance your employee benefits package, boost employee morale and loyalty, and gain a competitive edge in the talent market.

Contact your financial advisor or HR consultant today to discuss how you can implement a 401k plan or optimize your existing plan to take full advantage of the new contribution limits. By empowering your employees to save more for retirement, you're not only investing in their future but also strengthening your business for the long haul.