Many of us have completed, or are close to completing, our 2017 tax returns. As we finish this fun task, thoughts turn to 2018. Many of my clients want to know with the new tax laws, if the amount they can contribute to their retirement plans has changed. Let’s take a look at the contribution limits for 2018:
Traditional or Roth IRA accounts: $5,500 or if you are over age 50, the limit is $6500.
SEP IRA: 25% of your compensation up to a max of $55,000. This is an increase.
401(k): $18,500, this is an increase. The over age 50 increase is still an additional $6000.
Simple IRA: $12,500 or if you are over age 50, you can contribute an additional $3,000.
Don’t sell yourself short, contribute the maximum that you can comfortably contribute. Use all of the time you have on your side.