The Planner

2018 Retirement Plan Contribution Limits Provide Opportunities for Small Business

Scroll down to see more
Arrow down button
The Planner illustration graphic
Close popup button
March 26, 2018
Core Group US
Small Business
2018 Retirement Plan Contribution Limits Provide Opportunities for Small Business

Usually the increases in retirement plan contribution limits are not very interesting or news worthy. With the new tax law changes, however, you need to pay special attention to them for tax planning in your small business. For more information on the New Tax Law, read this article.

Because of the new 20% deduction for pass through entities, there are great reasons to consider retirement plans as a TAX PLANNING tool.  Limits on the new deduction require income to be below certain thresholds.  A retirement plan contribution allows businesses to get below that threshold and take the 20% deduction they would otherwise miss.

An often overlooked option is the defined benefit plan.  This is the old style pension plans used prior to the invention of the 401k.  For more information on defined benefit plans, read this article.

Changes for the 2018 year limits are minor.  Here is a summary:

Salary Deferral (401k) $18,500
Total Contribution $55,000
Defined Benefit Contribution $220,000
SIMPLE Contribution- No Change
Catch Up Contribution- No Change
Don’t wait to consider these tax planning options.  Most have deadlines for establishing the plans for this tax year.  For more information on tax savings for your small business, download the Retirement Plan Comparison below.

Ask Us a Question
Seems like no one has asked a question yet. Be the first one to do so by filling the form below
Thank you for engaging with us!
We’ll review your question and notify you as soon as we post our answer as quickly as possible. If you have any other questions, you can reach us at your earliest convenience
Oops! Something went wrong while submitting the form.
More Related Content
We couldn't find any related content.
Corey using his computer

Ready to make more money and keep more of it?

Each day you tell yourself you’ll get to this “one day” you are throwing money out the window. You risk getting to a point where you want to exit or retire, but you aren’t able to. The growth of your business, and your ideal outcome for your future depend on setting this up now.

Schedule Free Consultation
Contact Us
We respect your Privacy. The information you provide will be used to answer your question or to schedule an appointment if requested.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Close popup button