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401(k) Plans Get a Bump in 2018

401(k) Plans Get a Bump in 2018

401(k) Plans Get a Bump in 2018

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.