IRS Announces Pension Plan Limits for 2018Submitted by Karstens Investments on October 31st, 2017
By Mark Johnson, AIFA
The IRS has announced cost of living increases for dollar limitations on pension plans and other retirement savings accounts. For employees participating in a 401(k), 403(b), 457 or a federal government Thrift Savings Plan the annual elective contribution maximum increased by $500 to $18,500 for 2018. The catch-up contribution limit for individuals that will attain 50 years or older in 2018 remains unchanged at $6,000. The annual additions limitation for all employer and employee contributions made on an employee’s behalf during the calendar year has increased to $55,000 for 2018. The maximum compensation amount allowed to be considered for benefit purposes has also increased to $275,000. SIMPLE plan contribution limits remain unchanged at $12,500 and $3,000 for catch-up contributions.
IRA contribution limits remain unchanged at $5,500 and $1,000 for IRA catch-up contributions. The income ranges applicable to phase-out provisions for IRAs and Roth IRAs have increased for 2018.