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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.

2017

2018

 IRAs

IRA Contribution Limit$5,500$5,500
IRA Catch-Up Contributions (50 or over)1,0001,000

 IRA AGI Deduction Phase-out Starting at

Joint Return99,000101,000
Single or Head of Household62,00063,000

 SEP

SEP Minimum Compensation600600
SEP Maximum Contribution54,00055,000
SEP Maximum Compensation270,000275,000

 SIMPLE Plans

SIMPLE Maximum Contributions12,50012,500
Catch-Up Contributions (50 or over)3,0003,000

 401(k), 403(b), Profit-Sharing Plans, etc.

Annual Compensation270,000275,000
Elective Deferrals18,00018,500
Catch-up Contributions (50 or over)6,0006,000
Defined Contribution Limits54,00055,000
ESOP Limits1,080,000

215,000

1,105,000

220,000

 Other

HCE Threshold120,000120,000
Deferred Benefit Limits215,000220,000
Key Employee175,000175,000
457 Elective Deferrals18,00018,500
Control Employee (board member or officer)105,000110,000
Control Employee (compensation-based)215,000220,000
Taxable Wage Base127,200128,400

Contact Us

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.

Daniel DiMario

Dan's practice covers the preparation and review of business, fiduciary and individual tax returns, including returns for family offices and high-net-worth individuals. He regularly communicates with clients on changes in federal, state and local income tax laws and compliance issues, and details how these changes will impact clients’ income tax liability.