Industry Update: IRS Limits Adjustments for 2018

Written by CUNA Mutual Group Annuities

The Internal Revenue Service announced its changes to retirement plan contribution and Social Security limits for 20181.These numbers don’t necessarily change annually, so being aware of this year’s tax-adjusted figures could impact how you guide your clients in their financial decisions.

Retirement Contribution Limits

Several of the retirement plan categories experienced slight contribution increases for 2018, as reflected in the following table.

Chart of adjusted IRS retirement plan contribution limits

It’s important to note that one contribution limit that remained the same year over year is the 401(k) catch up. As in 2017, the maximum amount participants age 50 or older can earmark for catch up is capped at $6,000 for 20182.

Social Security Limits

For those clients collecting Social Security, you may want to alert them to the 2018 changes to the retirement earnings test exempt amounts, as determined using procedures defined in the Social Security Act3:

chart showing 2018 adjusted IRS Social Security test exempt differences

Learn more about helping your clients possibly strengthen their financial strategies and position in Risk Control Accounts: Limiting the Downside, Providing Opportunity for Higher Returns (Opens in a new window).

The Changing Retirement Landscape

Retirement planning now needs to go beyond asset accumulation, as the majority of the population soon won't be able to rely on pensions and Social Security supplements.

Economic Commentary: 2018 Tax Cuts and Jobs Act

Formally enacted on Jan. 1, 2018, the Tax Cuts and Jobs Act introduces a number of changes to the tax code

Economic Commentary: What's in Store for Investors in 2018 and Beyond

Business and investment cycles will inevitably change. See what economists are forecasting 2018 and beyond.