The IRS and the Social Security Administration published some inflation-adjusted numbers for retirement contributions and gifts for 2018. You can use this information as you begin your tax and financial planning for the coming year.
- The Social Security taxable wage limit for 2018 will be $128,700. Retirees under full retirement age can earn up to $17,040 without reducing their monthly benefit checks.
- The threshold for unearned income a child can earn in 2018 without having the kiddie tax apply is $1,050.
- The amount that can be given each year without paying gift tax is $15,000 ($30,000 for joint gifts).
- The amount that can be set aside in a health savings account is limited to $3,450 for individuals and $6,900 for families. Those 55 or older can contribute an additional $1,000.
- The maximum salary deferral for a 401(k) increases in 2018 to $18,500. The catch-up limit for those 50 or older is $6,000.
- The maximum IRA contribution limit remains unchanged at $5,500. The limit for those 50 or older is $6,500.
- The maximum salary deferral for SIMPLEs remains the same in 2018 at $12,500. Those 50 or older can contribute an additional $3,000.
- As soon as other tax numbers are finalized for 2018, we’ll pass them along to you. Contact our office if you have questions or wish to discuss tax planning for the upcoming filing season.