IRA

2018 IRA and Qualified Plan Contribution Limits Update

November 15, 2017

Learn more about the 2018 cost-of-living adjustments (COLA) and how they compare to 2017. What do these changes in 2018 mean for your clients?

The IRS recently announced the 2018 cost-of-living adjustment (COLA) increases to contribution limits for IRAs and qualified plans.

Each year, the IRS adjusts these numbers for cost-of-living increases in $500 increments when statutory thresholds are met. Although there were no changes to traditional and Roth IRAs, we did see some increases for defined contribution limits (both elective salary deferral and employer contributions).

Below is a chart that compares the 2017 limits to the 2018 limits.   

  2017 2018 COLA Increases
Traditional and Roth IRA Contribution Limits $5,500 $5,500 No Change
Traditional and Roth IRA Catch-Up Contributions $1,000 $1,000 No Change
SIMPLE IRA Maximum Contributions $12,500
$12,500 No Change
SIMPLE IRA Catch-Up Contributions
$3,000 $3,000 No Change
SEP-IRA Contribution Limit $54,000 $55,000 $1,000
401(k), 403(b), and 457(b) Maximum Elective Deferrals $18,000 $18,500 $500
401(k), 403(b), and 457(b) Catch-Up Contributions $6,000 $6,000 No Change
IRC 415 Defined Contribution Limits
$54,000 $55,000
$1,000
QLAC $125,000 $130,000
$5,000

For more information on the COLA changes, please visit the IRS website.

 

Should you have any questions regarding the increase in limits, please feel free to contact the Retirement Strategies Group at (800) 722-2333, ext. 3939, or send an e-mail to RSG@PacificLife.com

Picture of Caroline Elrod

Caroline Elrod is a Retirement Strategies Consultant with the Retirement Solutions Division at Pacific Life. She brings several years of industry experience to her role that includes tax planning with insurance products. Caroline enjoys educating financial advisors on creative and practical solutions to business, estate and retirement planning concerns.

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