It's a new year, so it's time to consider boosting contributions to your employer-sponsored retirement savings plan—and the federal government is willing to help (a little.) The maximum contribution has increased this year, so you can shelter a bit more money from taxation, if you choose, to maximize your retirement savings.

For most workers, the 401k is their standard employer-sponsored retirement plan. Some workers, however, are enrolled in 403b or 457b plans, instead. While there are some minor differences between these plans, they are generally treated in a similar manner, and they usually have the same maximum contribution limits. The main difference between these plans is worker classification. Generally, 401k plans are used by for-profit businesses; 403b plans are used by tax-exempt groups, such as schools or hospitals; and 457b plans are for government workers, although there are some non-governmental organizations that also qualify to use these plans.

For simplification purposes, this discussion will refer to the most common plan, the 401k. The information is still relevant, though, if you are enrolled in either a 403b or 457b plan.

What are the new maximum contributions?

According to the IRS, If you are under age 50, your maximum 401k contribution is $18,500 in 2018, which is an increase of $500 over 2017 limits. For workers 50 and over, the catch-up contribution of $6,000 remains constant, which means you can contribute a total of $24,500 in 2018.

These amounts do not include any contributions from your employer. If you include all possible contributions from your employer, the total maximum amount you can shelter in your employer-sponsored tax-deferred plan in 2018 is $55,000 for those under 50 and $61,000 for those 50 and over.

If you are enrolled in a 403b and 457b plan, there are some minor differences in the “catchup provisions” in these plans. You should check with your plan administrator to learn about the specific provisions of your plan.