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2018 Inflation Adjustments for Retirement Plans

2018 Inflation Adjustments for Retirement Plans

| January 23, 2018
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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

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