IRS Now Says New Tax Law Won’t Affect 2018 Benefits, Contributions

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Despite earlier announced retirement plan limitations under the new tax law, the IRS now says the law won’t affect 2018 benefits and contributions.

The agency had announced the earlier limits in IR 2017-177. But the latest advisory states that the new law didn’t change the section that limits benefits and contributions to retirement plans.

The new law also specifies that contribution limits for individual retirement accounts (IRAs), and the income thresholds related to IRAs and the saver’s credit, are to be adjusted for cost-of-living changes using procedures that apply to many basic income tax parameters, the agency states.

“Although the new law made changes to  how these cost-of-living adjustments are made, after taking the applicable rounding rules into account, the amounts for 2018 [delineated in the prior announcements] remain unchanged,” the IRS stated.

About Terry Sheridan

Terry Sheridan

Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.

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