The IRS recently announced the 2018 cost-of-living adjustments for various retirement plan dollar limits.
The indexed amounts, and other commonly used limits, are listed below:
| 2018 | 2017 | 2016 | |||
IRAs |
|||||
|---|---|---|---|---|---|
| IRA Contribution Limit | $5,500 | $5,500 | $5,500 | ||
| IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 | ||
IRA AGI Deduction Phase-out Starting at |
|||||
| Joint Return | 101,000 | 99,000 | 98,000 | ||
| Single or Head of Household | 63,000 | 62,000 | 61,000 | ||
SEP |
|||||
| SEP Minimum Compensation | 600 | 600 | 600 | ||
| SEP Maximum Contribution | 55,000 | 54,000 | 53,000 | ||
| SEP Maximum Compensation | 275,000 | 270,000 | 265,000 | ||
SIMPLE Plans |
|||||
| SIMPLE Maximum Contributions | 12,500 | 12,500 | 12,500 | ||
| Catch-up Contributions | 3,000 | 3,000 | 3,000 | ||
401(k), 403(b), Profit-Sharing Plans, etc. |
|||||
| Annual Compensation | 275,000 | 270,000 | 265,000 | ||
| Elective Deferrals | 18,500 | 18,000 | 18,000 | ||
| Catch-up Contributions | 6,000 | 6,000 | 6,000 | ||
| Defined Contribution Limits | 55,000 | 54,000 | 53,000 | ||
| ESOP Limits |
1,105,000 220,000 |
1,080,000 215,000 |
1,070,000 210,000 |
||
Other |
|||||
| HCE Threshold | 120,000 | 120,000 | 120,000 | ||
| Defined Benefit Limits | 220,000 | 215,000 | 210,000 | ||
| Key Employee | 175,000 | 175,000 | 170,000 | ||
| 457 Elective Deferrals | 18,500 | 18,000 | 18,000 | ||
| Control Employee (board member or officer) | 110,000 | 105,000 | 105,000 | ||
| Control Employee (compensation-based) | 220,000 | 215,000 | 215,000 | ||
| Taxable Wage Base | 128,400 | 127,200 | 118,500 | ||
Receive Free financial tips & Tax Alerts!
"*" indicates required fields
In an era of growing environmental awareness and the push for sustainable living, homeowners are more interested than ever in upgrading their living spaces to be energy-efficient. However, it’s not…
Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The Partnership Issue An unincorporated business with your spouse is…
The IRS announced that it has stopped processing all new Employee Retention Credit (ERC) refund claims and will continue its moratorium at least through December 31, 2023. (IR-2023-169) In IRS…
