The contribution limit for 401(k) accounts is reassessed annually, and occasionally it’s adjusted upward for the ensuing year. However, the yearly cap on 401(k) contributions for 2016 will remain at $18,000, as it was in the previous year. Such limits are subject to periodical review and potential increments. Despite a $500 augmentation the previous year, a period of low inflation ensures the limit will not be enhanced next year, as per the Wednesday announcement by the IRS. Similar to the 401(k), other tax-deferred retirement accounts like the 403(b), most 457 accounts, and the Federal Government’s Thrift Savings Plan will also maintain an $18,000 cap on contributions. You can discover more on CNN Money. Credit for the accompanying photo goes to Luxstorm, and sourced from SmartAsset.com.
