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!
These days, most businesses have some intangible assets. The tax treatment of these assets can be complex. What Makes Intangibles so Complicated? IRS regulations require the capitalization of costs to:…
An Alternate Valuation Date can Reduce Estate Tax Liability If you have money invested in the stock market, you’re well aware of potential volatility. Needless to say, this volatility can…
These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells…
