Changes to Retirement Plan Limitations for 2018
The Internal Revenue Service (IRS) announced cost-of-living adjustments affecting dollar limitations for pension plans and other qualified retirement plans for tax year 2018.
For instance, the contribution limit for employees who participate in 401(k), 403(b) and most 457 plans is increased from $18,000 to $18,500. Some limitations remain unchanged from 2017 including the limit on annual contributions to an IRA. The amount for 2018 will stay at $5,500 and the catch-up contribution limit for those aged 50 and over also remains unchanged at $1,000.
Herbein + Company, Inc. offers the grid below as a quick reference of the limits for 2017 and 2018. For a detailed explanation of the adjustments and limitations, contact your Herbein tax professional.