2018 Retirement Plan Limits

The IRS recently announced the retirement plan limits for 2018.  And while much has stayed the same, there are a couple notable changes.

401k, 403b and 457 Plans

For the first time in three years the contribution limit for employees participating in 401k, 403b and most 457 plans has increased.  Starting in 2018 employees can contribute $18,500 into these plans, up $500 from the previous limit.  However, the catch-up contribution for individuals age 50 or older remains unchanged at $6,000.

SEP IRA and Solo 401k Plans

Self-employed individuals and small business owners will see an increase in the amount they can contribute to a SEP IRA or Solo 401k.  The maximum amount they can save goes up from $54,000 in 2017 to $55,000 in 2018.

Traditional and Roth IRAs

The contribution limits for both traditional and Roth IRAs have not changed.  IRA owners can still contribute a maximum of $5,500, with an additional $1,000 catchup contribution allowed for individuals who are age 50 or older.

And while the contribution limits have not changed, it is important to note that the income limitations have been indexed for inflation.

If you would like to discuss how the above mentioned changes might impact your specific tax situation, please give us a call at 1-866-287-9604.