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2018 Retirement Plan Limits Update

 

2018 Retirement Plan Limits Update

 

For 2018, the Internal Revenue Service (IRS) increased several plan limitations to reflect cost of living adjustments. Below are some of these limits for 2018:

  1. • Elective deferrals to 401(k), 403(b) and most 457 plans increased from $18,000 to $18,500

  2. • The defined contribution limit increased from $54,000 to $55,000

  3. • The defined benefit limit increased from $215,000 to $220,000

  4. • The annual compensation limit increased from $270,000 to $275,000

  5. • Various IRA-related phase-out AGI thresholds increased

     

Limitations that remain unchanged from 2017:

  1. • Annual contributions to an IRA remains at $5,500 (plus $1,000 catch-up contributions for individuals over age 50)

  2. • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b) and most 457 plans remains at $6,000

  3. • The definition of highly compensated employee remains unchanged at $120,000

  4. • The limit on salary deferrals to a SIMPLE retirement plan also remains unchanged at $12,500 (plus $3,000 catch-up contributions for individuals over age 50)

     

See all of the updated limits on our website at www.bluebenefitsonline.com/irs-limits

 

Did You Know…

  1. • that retirement can last for 30 years or more?

  2. • you might need up to 80% of your current annual income to retire comfortably?

  3. • the average monthly benefit paid by the Social Security Administration is $1,200? (per www.irs.gov)

     

A retirement plan can provide significant benefits to non-profit organizations and their employees including:

  1. • A retirement plan can attract and retain better employees

  2. • A plan will help their employees save for their future

  3. • Employee contributions can reduce taxable income

  4. • Employee contributions are easy to make through payroll deductions

     

There are various retirement plans available to offer such benefits. If you would like to find out more about establishing a plan or would like us to help evaluate whether your current plan maximizes benefits for your employees, please contact Holly Fields or your local office.

 


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