fbpx

< Back to Thought Leadership

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.

 

Tax Reform Resource Center

Read More Thought Leadership Articles Like what you read? Subscribe to our newsletter. Click Here.

 

Blue & Co., LLC Announces New Partnership With Vsimple | Vsimple and Blue and Co logo

Blue & Co., LLC Announces New Partnership With Vsimple

CARMEL, Ind. (May 5, 2022) – Blue & Co., LLC is excited to announce our new partnership with Vsimple, a workflow management software company based in New Albany, IN.  Blue & Co and Vsimple will be working closely together to address the workflow and process improvement challenges of manufacturers throughout the Midwest. “At Blue & […]

Learn More
Proposed Rule FY 2023 for Skilled Nursing Facilities

Proposed Rule FY 2023 for Skilled Nursing Facilities

It is that time of year again! The Center for Medicare and Medicaid Services (CMS) has issued the proposed rule that would update Medicare payment policies and rates for the fiscal year (FY) 2023’s Skilled Nursing Facility (SNF) Prospective Payment System (PPS). The Patient Driven Payment Model (PDPM) was implemented on October 1, 2019. This […]

Learn More
Coverage Scheduling Solutions for Physician Practices and Hospital Systems

Scheduling Solutions for Clinician Work-Life Balance

One of the most challenging conversations in any multi-physician practice or specialty-based hospital employed group is about how to create a fair distribution of on-call and/or inpatient hospital service coverage while balancing the duties of an outpatient practice. The COVID-19 pandemic has contributed to clinician burnout, and physicians and Advanced Practice Providers (APPs) place significant […]

Learn More