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
It’s not uncommon for an estate plan to contain multiple trusts. They can enable you to hold assets for and transfer them to beneficiaries, avoid probate, and possibly reduce estate…
Members of the sandwich generation — those who find themselves simultaneously caring for aging parents while supporting their own children — face unique financial and emotional pressures. One critical yet…
If you inherit assets after a loved one passes away, they often arrive with a valuable — but frequently misunderstood — tax benefit called the step-up in basis. Below is…
