CONNECT

Address:

819 West 7th Avenue 
Spokane, WA 99204

Phone:

509-327-1171

Fax/Other:

509-327-1181

For the year 2018, those who participate in a 401k plan will be able to increase their contribution by $500 for a maximum contribution limit of $ 18,500.  All IRA plan limits did not change.

 

The maximum contribution for your 401k plan is $18,500.

401k catch up contributions for those age 50 and over is an additional $6,000.

The maximum contribution to a SIMPLE IRA is 12,500.

SIMPLE IRA catch up contributions for those age 50 and over is $3,000.

The maximum contribution for your IRA is $5,500.

IRA catch up contributions for those age 50 and over is $1,000.

 

 

 

Employee/individual contribution limits

Elective deferral limits

2017

2018

401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 (Includes Roth 401(k) and Roth 403(b) contributions)

Lesser of $18,000 or 100% of participant's compensation

Lesser of $18,500 or 100% of participant's compensation

SIMPLE 401(k) plans and SIMPLE IRA plans1

Lesser of $12,500 or 100% of participant's compensation

Lesser of $12,500 or 100% of participant's compensation

 

1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).

IRA contribution limits

2017

2018

Traditional IRAs

Lesser of $5,500 or 100% of earned income

Lesser of $5,500 or 100% of earned income

Roth IRAs

Lesser of $5,500 or 100% of earned income

Lesser of $5,500 or 100% of earned income

 

 

Additional "catch-up" limits (individuals age 50 or older)

2017

2018

401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2

$6,000

$6,000

SIMPLE 401(k) plans and SIMPLE IRA plans

$3,000

$3,000

IRAs (traditional and Roth)

$1,000

$1,000

 

2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

Employer contribution/benefit 3 limits

Defined benefit plan limits

2017

2018

Annual contribution limit per participant

No predetermined limit. Contributions based on amount needed to fund promised benefits

No predetermined limit. Contributions based on amount needed to fund promised benefits

Annual benefit limit per participant

Lesser of $215,000 or 100% of average compensation for highest three consecutive years

Lesser of $220,000 or 100% of average compensation for highest three consecutive years

 

 

Defined contribution plan limits (qualified plans, 403(b) plans, SEP, and SIMPLE plans)

2017

2018

Annual addition limit per participant (employer contributions; employee pretax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans)

Lesser of $54,000 or 100% (25% for SEP) of participant's compensation

Lesser of $55,000 or 100% (25% for SEP) of participant's compensation

Maximum tax-deductible employer contribution (not applicable to 403(b) plans)

25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pretax and Roth contributions; 100% for SIMPLE plans

25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pretax and Roth contributions; 100% for SIMPLE plans

 

3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.

Compensation limits/thresholds

Retirement plan compensation limits

2017

2018

Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs)

$270,000

$275,000

Compensation threshold used to determine a highly-compensated employee

$120,000 (when 2017 is the look-back year)

$120,000 (when 2018 is the look-back year)

Compensation threshold used to determine a key employee in a top-heavy plan

$1 for more-than-5% owners; $175,000 for officers; $150,000 for more-than-1% owners

"$1 for more-than-5% owners $175,000 for officers $150,000 for more-than-1% owners"

Compensation threshold used to determine a qualifying employee under a SIMPLE plan

$5,000

$5,000

Compensation threshold used to determine a qualifying employee under a SEP plan

$600

$600

 

 

Traditional deductible IRA income limits--Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as:

2017

2018

Single

$62,000 - $72,000

$63,000 - $73,000

Married filing jointly

$99,000 - $119,000

$101,000 - $121,000

Married filing separately

$0 - $10,000

$0 - $10,000

 

 

Traditional deductible IRA income limits--Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a:

2017

2018

Joint return with a spouse who is covered by an employer-sponsored retirement plan

$186,000 - $196,000

$189,000 - $199,000

 

 

Roth IRA compensation limits--Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as:

2017

2018

Single

$118,000 - $133,000

$120,000 - $135,000

Married filing jointly

$186,000 - $196,000

$189,000 - $199,000

Married filing separately

$0 - $10,000

$0 - $10,000

 

 

 

Investment adviser representative and registered representative of, and securities and investment advisory services offered through Voya Financial Advisors, Inc., (member SIPC). 

This information was prepared by Broadridge Investor Communication Solutions, Inc. and has been made available for Voya Financial Advisors' representatives for distribution to the public for educational information only. Broadridge Investor Communication Solutions, Inc. is not affiliated with nor controlled by Voya Financial Advisors. The opinions/views expressed within are that of Broadridge Investor Communication Solutions, Inc. and do not necessarily reflect those of Voya Financial Advisors or its representatives. In addition, they are not intended to provide specific advice or recommendations for any individual. Neither Voya Financial Advisors nor its representatives provide tax or legal advice. You should consult with your financial professional, attorney, accountant or tax advisor regarding your individual situation prior to making any investment decisions.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.