The IRS has announced that they are increasing annual contribution limits for 2018 – for those of you maxing out your retirement plans and/or HSAs – this is especially important for you!
The annual contribution limit for 401k, 403b, 457 (most), & TSP plans has increased from $18,000 up to $18,500. If you’re age 50 or older at any time during the year, you can also make additional catch-up contributions up to $6,000 (no change to this amount) for a maximum annual contribution of $24,500.
Health Savings Accounts
For those enrolled in a medical plan that allows for HSA contributions, these limits have increased for 2018 as well. The annual HSA contribution limit for a family plan is now $6,900 – up from $6,750. For individuals, the contribution limit is now $3,450 – up from $3,400.
The annual maximum for IRA’s and Roth IRA’s did not change – those remain at $5,500 (plus $1,000 catch up for those age 50 and older). However, the income levels used for determining eligibility for contributions have increased. The new income phase-out ranges for deductible IRA contributions are:
Single taxpayer covered by work retirement plan: $63,000 – $73,000
Married filing jointly where the IRA contributor is covered by work plan: $101,000 – $121,000
Married filing jointly where the IRA contributor is NOT covered by a work plan, but their spouse is: $189,000 – $199,000
And the new phase-out ranges for Roth IRA contributions are:
Single & Head of Household: $120,000 – $135,000
Married filing Jointly: $189,000 – $199,000
For those planning on maxing out these plans, now is the time to make adjustments to get on pace to max these out for the 2018 calendar year. Let us know how we can help!