401(k) Plans and Contributions – Important Ages

Contribution Limit for 2018 – $18,500.00

50 – if are 50 or older you can make an addtional “catch-up” contribution of $6,000.00 in 2018 to your 401(k).

55 – If you seperated from employment with company sponsoring your plan after you turn 55 you may be able to take a distribution from your 401(k) without incurring the 10% early withdrawal fee.

59.5 – After you pass 59.5 years of age you can withdraw money from your 401(k) without incurring the 10% early withdrawal penalty

70.5 – once you exceed 70.5 years of age you must begin taking required minimum distributions (RMD) from your 401(k) plan. If you fail to due so you will be subject to a penalty.