IRS Releases Various Indexed Amounts for 2018
– by Brian Rippeon, CPA, Principal
IRS has released the following indexed amounts effective January 1, 2018:
- Employee deferrals to retirement plans: Elective deferrals to 401(k) plans, 403(b) plans, and the Federal Government’s Thrift Savings Plan are limited to $18,500 for 2018 (an increase of $500).
- Retirement Plan Catch-Up Contributions: The limit for catch-up contributions to 401(k) plans and Simple IRAs for individuals aged 50 or over remains unchanged at $6,000 for 2018.
- Health Flexible Spending Accounts: The 2018 dollar limitation for voluntary salary reductions for contributions to Section 125 Health Flexible Spending Accounts is $2,650.
- Annual Gift Exclusion: The first $15,000 of gifts to any person are not included in the total amount of taxable gifts made during 2018.
- Section 179 Expensing: For taxable years beginning in 2018, up to $520,000 of Section 179 expense may be elected, so long as total Section 179 eligible property placed in service during the taxable year is less than $2,070,000. If total Section 179 eligible property placed in service during the taxable year exceeds $2,070,000, then the $520,000 limit is reduced (but not below zero) dollar-for-dollar by the amount of the excess.
Have questions? Give us a call: 301-662-9200.