The IRS has recently provided 2018 inflation adjustments for Retirement plans and to HSAs/HDHP plans.
As your trusted wealth advisor, we wanted to take this opportunity as a courtesy gesture to provide you with the 2018 inflation-adjusted figures, which are outlined below. Although there were not many increases to the amounts, it remains important to review these types of plans each year.
Retirement Plan | 2017 | 2018 |
401(k)/403(b)/457(b) | $18,000 | $18,500 |
401(k)/403(b) – Catch-up Provision | $6,000 | $6,000 |
Annual Limitation on Compensation | $270,000 | $275,000 |
Defined Contribution Limitation | $54,000 | $55,000 |
Defined Benefit Limitation | $215,000 | $220,000 |
Highly Compensated Employee Threshold | $120,000 | $120,000 |
Key Employee Compensation – Officer Threshold | $175,000 | $175,000 |
Simple IRA Deduction | $12,500 | $12,500 |
Simple IRA – Catch-up Provision | $3,000 | $3,000 |
IRA Contribution Limit | $5,500 | $5,500 |
IRA – Catch-up Provision | $1,000 | $1,000 |
Social Security – Wage Base | $127,200 | $128,400 |
HSAs/HDHP Plans | 2017 | 2018 |
Health Savings Account Contributions – Single | $3,400 | $3,450 |
Health Savings Account Contributions – Family | $6,750 | $6,900 |
Health Savings Account Contributions – Catch-up Provision (age 55+) | $1,000 | $1,000 |
High Deductible Health Plan, min. annual deductible – Single | $1,300 | $1,350 |
High Deductible Health Plan, min. annual deductible – Family | $2,600 | $2,700 |
Out of pocket maximums – Single | $6,550 | $6,650 |
Out of pocket maximums – Family | $13,100 | $13,300 |
Be sure you are not missing out on taking advantage of health/retirement plan savings! Now may be the opportune time to review your retirement goals and how we can help you reach them. We would be happy to help you understand how inflation can affect you and your retirement.
The content of this material was provided to you by Lincoln Financial Network for its representatives and their clients. Lincoln Financial Network is the marketing name for Lincoln Financial Advisors Corp. and Lincoln Financial Securities Corporation. Source of data – IRS.gov CRN-1997101-011718