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
