Retirement & Estate Limits for 2018

by | Oct 23, 2017 | Wealth Management

The IRS issued notices, updating retirement plan limits and estate plan limits for the year 2018.  Here are some of the highlights:

  • Salary Deferral Limit for 401(k), 457(b), 403(b) Plans:  Increasing by $500 to $18,500.  The catch-up contribution (age > 50) remains $6,000.
  • Max contribution to a defined contribution plan increases to $61,000 for 2018, which is the sum of $55,000 plus the catch-up contribution of $6,000.
  • Traditional IRA & Roth IRA contribution limits remained the same in 2018 ($5,550 with a $1,000 catch-up contribution).  However, the deduction and contribution phase-outs increased.
  • SEP-IRA Maximum Contribution Limit:  Increasing by $2,000 to $55,000.
  • The maximum contribution to a SIMPLE IRA in 2017 and 2018 is $28,000, which would require compensation of at least $416,667.
  • Annual Gift Tax Exclusion:  Increasing by $1,000 to $15,000
  • Applicable Gift & Estate Tax Exclusion:  After adjusting for inflation the amount increases to $5,600,000

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