Make it a point to review your beneficiaries, both primary and contingent, for your qualified retirement plans and IRAs. It’s important that the designations have been updated to reflect major changes in your life or significant events like a birth, death, marriage or divorce. Note that these designations supersede a will.
Changes For 2018 Retirement Plans:
Changes For 2018 Retirement Plans:
- The 401(k) contribution limit has increased to $18,500 (age 50 can contribute an additional $6,000). The same limits apply to 403(b) & 457 plans.
- The contribution cap on SIMPLEs remains at $12,500 (age 50 can contribute and extra $3,000).
- Roth IRA - contribution limit is $5,500 (plus an extra $1000 for age 50). The income ceiling on Roth IRA contributions begins phasing out at AGIs of $189,000 to $199,000 for couples; and $120,000 to $135,000 for singles.
- Traditional IRA - contribution limit is $5,500 (plus an extra $1000 for age 50). If you are covered by a retirement plan at work, the phaseout range for a tradition IRA deduction is an AGI between $101,000 to $121,000 for couples filing jointly and $63,000 to $73,000 for single filers. If married filing jointly with one spouse who is covered by a plan at work, the phaseout zone for deducting a contribution for the uncovered spouse will range from an AGI of $189,000 to $199,000. If neither spouse has a retirement plan at work, the contribution can be deducted fully.
- The SEP contribution limit is $53,000. An employer contribution is capped at 25% of wages, and a self-employed contribution is capped at 20% of net self-employment income less 50% of SE tax
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