After three years of no increases to annual contribution limits, the IRS announced today that for 2018, the limit will increase by $500 for 401(k), 403(b), and 457 Plans.
Typically announced in mid-October, the predictions were pretty much right on.
Not every type of retirement plan received an increase to their contribution limit - for the fourth year in a row, SIMPLE IRAs will only be allowed to set aside up to $12,500 which is $6000 to $9000 less than those with 401(k) accounts (and if they were over 50 with catch up contributions).
Here's a sample chart of a few of the selected plan types along with their limits dating back to 2012:
401(k) Contribution Limits for 2018
It's not too late to start a 401(k) plan if you're a small business owner for 2017, but time is almost running out, contact us today.