In its latest cost-of-living adjustments to retirement contributions, the IRS has good news for 401k plan holders, SEP plan participants, and some other profit sharing plans.
We decided to put together a simple Infographic to help you catch up.
Revised contribution limits for 401k Retirement Plans in 2018
- SEP Plan: SEP plans have got a piece of the pie, with its maximum contributions for 2018 rising to $55,000, as compared to $54,000 in 2017. Further, the IRS has increased the maximum salary compensation for eligible employees to $275,000, up from $270,000 in 2017.
- Solo 401k plans: For Solo 401k plans, you can contribute up to $61,000 in 2018 against the previous year contributions of $60,000. Both of these limits are inclusive of the $6,000 catch-up contributions for professionals above 50 years.
- 401(k), 403(b), and other profit-sharing plans: The elective deferral portion of the contributions has grown by $500 to $18,500 for 2018. Similarly, the defined contribution limit for these plans has grown to $55,000 for 2018 against $54,000 for 2017.