The Tax Cuts and Jobs Act has changed many things for Payroll. But the IRS recently announced there’s at least one thing staying the same.

 

That’s the Tax Year 2018 dollar contribution limits for employee retirement plans.

 

Because the new legislation didn’t change any of the existing provisions that allow the Treasury Department to update contribution limits annually, the previously announced limits stand.

 

Current numbers

 

As a reminder of Notice 2017-64, the 2018 dollar contribution limit for employees participating in a 401(K) plan is $18,500. The same limit applies to employees in 403(b) plans and most 457 plans.

 

For employees age 50 or over who want to make catch-up contributions to most applicable employer plans, the dollar limit is $6,000.

 

The catch-up contribution limit is $3,000 for SIMPLE retirement plans, and the elective deferral limitation for these plans is $12,500.

 

A free reference list is available by visiting keepuptodateonpayroll.com. Download our 2018 “Dollar limits”

 

More info: bit.ly/limits548