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IRS announces 2018 pension and other COLAs

News |

The IRS has announced updated limits for benefits and contributions for qualified retirement plans and more for 2018. Here are the highlights:

  • 401(k) contribution limit increases to $18,500 (up from $18,000)
  • Annual additions to defined contribution plans increase by $1,000 to $55,000
  • Catch-up contributions (for those age 50 and over) remains unchanged at $6,000
  • Voluntary salary reductions for health flex spending arrangements increases to $2,650 (up $50)
  • Standard deduction for married couples filing jointly increases to $13,000 (up from $12,700)
  • Standard deduction for single taxpayers and married filing separately increases to $6,500 (up from $6,350)
  • Personal exemption increases by $100 to $4,150
  • Plans defined as high deductible have an annual deductible of $2,300-$3,450 for individuals and $4,600-$6,850 (Up by $50-$100 across the board)
  • Maximum out-of-pocket expenses increase $100 to $4,600 for singles and  $150 to $8,400 for families

For the complete list, visit https://www.irs.gov/pub/irs-drop/n-17-64.pdf. If you have questions about these updates, call your account manager at 888-556-0123.