Monday, December 24, 2018

Pension Plan and Federal Tax Limits and Tax Rates for 2017 and 2018

Pension Plan and Federal Tax Limits and Tax Rates for2017 and 2018

Below are the Pension Plan Limits,Federal Tax Limits and Tax Rates for 2017 and 2018. The taxable wage anddeduction limits are set up in the NetSuite system for payroll users.

DescriptionWage Limit
20182017
Social Security Limit $128,700$127,200
MedicareNo limitNo limit
Federal Unemployment Tax (FUTA)$7,000$7,000
Adoption Assistance (qualified assistance & special needs)$13,840$13,570
DescriptionWithholding Limit
20182017
401(k), 403(b), 408(k) SEP, 457(b) elective deferral limit$18,500$ 18,000
401(k), 403(b), 408(k) SEP catch-up$6,000$6,000
408(p) SIMPLE elective deferral limit$12,500$12,500
408(p) SIMPLE catch-up$3,000$3,000
Flexible Spending Account (FSAs)$2,650$2,650
Dependent Care$5,000$5,000
Health Saving Accounts (HSAs) self/family$3,450/$6,900$3,400/$6,750
DescriptionTax Rate
20182017
Social Security Employee6.20%6.20%
Social Security Employer (Company)6.20%6.20%
Medicare Employee1.45%1.45%
Medicare Employee in excess of $200,0002.35%2.35%
Medicare Employer (Company)1.45%1.45%


Please refer to the link below for more information on 2018Social Security Wage Base:

https://www.ssa.gov/policy/docs/quickfacts/prog_highlights/RatesLimits2018.html

For more information on 2018 Retirement Plan Limits IR-2017-177, 10-19-17:

https://www.irs.gov/newsroom/irs-announces-2018-pension-plan-limitations-401k-contribution-limit-increases-to-18500-for-2018

For more information on 2018 Inflation-adjusted Items, Rev. Proc. 2017-58:

https://www.irs.gov/pub/irs-drop/rp-17-58.pdf

For 2018 Health Savings Accounts, Rev. Proc. 2017-37:

https://www.irs.gov/pub/irs-drop/rp-17-37.pdf


Disclaimer: To ensure compliance with requirements imposed by the IRS underCircular 230, NetSuite informs you that any U.S. federal tax advice containedin this communication (including any attachments), unless otherwisespecifically stated, was not intended or written to be used, and cannot beused, for the purpose of (1) avoiding penalties under the Internal Revenue Codeor (2) promoting, marketing or recommending to another party any matters addressedherein.

These materials do not constitute tax, legal, or accounting advice. NetSuite andits agents, employees and representatives are not in the business of offeringsuch advice. Please consult your tax, legal and accounting advisors for anyadvice needed pertaining to this topic.

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