Tax deferred retirement accounts like IRAs and 401(k) plans are a great way to save money for the future while enjoying tax benefits!
In October, the IRS announced the inflation-adjusted numbers for 2018.
IRA and Roth IRA contribution limits
The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2018 is $5,500 or $6,500 for those age 50 or older. You can contribute to both a traditional IRA and a Roth IRA in 2018, but your total contributions cannot exceed these annual limits.
Your ability to deduct IRA contributions may be phased out based on your income.
Employer retirement plans
Retirement plan participants can contribute up to $18,500 in 2018 – an increase of $500. Those 50 and older can contribute an additional $6,000 for a total of $24,500. SIMPLE plan participants can contribute up to $12,500 or up to $15,500 if age 50 or older.
Please contact us for specific guidance or advice for investing in your IRA, Roth IRA and company retirement plans. We are happy to help.