Annually, the IRS reviews the limits placed on retirement plans and IRA contributions and the amount of benefits allowed under a pension plan. Figures are evaluated to determine if an adjustment is needed based on cost of living index statutory thresholds. For 2018, several items are unchanged from previous years. However, other items have been increased, including defined contribution limits into certain plans. To help clients and others understand the changes, Selden Fox has provided a summary below.
|IRA Contribution Limit||$5,500||$5,500|
|IRA Catch-Up Contributions (50 or over)||1,000||1,000|
IRA AGI Deduction Phase-out Starting at
|Single or Head of Household||62,000||63,000|
|SEP Minimum Compensation||600||600|
|SEP Maximum Contribution||54,000||55,000|
|SEP Maximum Compensation||270,000||275,000|
|SIMPLE Maximum Contributions||12,500||12,500|
|Catch-Up Contributions (50 or over)||3,000||3,000|
401(k), 403(b), Profit-Sharing Plans, etc.
|Catch-up Contributions (50 or over)||6,000||6,000|
|Defined Contribution Limits||54,000||55,000|
|Deferred Benefit Limits||215,000||220,000|
|457 Elective Deferrals||18,000||18,500|
|Control Employee (board member or officer)||105,000||110,000|
|Control Employee (compensation-based)||215,000||220,000|
|Taxable Wage Base||127,200||128,400|
Maximizing retirement savings is one way to ensure that your future income aligns with your important retirement goals. If you have questions about retirement plan contributions limits or plan audits, Selden Fox can help. For additional information, please call us at 630.954.1400, or click here to contact us.