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.
Description | Wage Limit | |
2018 | 2017 | |
Social Security Limit | $128,700 | $127,200 |
Medicare | No limit | No limit |
Federal Unemployment Tax (FUTA) | $7,000 | $7,000 |
Adoption Assistance (qualified assistance & special needs) | $13,840 | $13,570 |
Description | Withholding Limit | |
2018 | 2017 | |
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 |
Description | Tax Rate | |
2018 | 2017 | |
Social Security Employee | 6.20% | 6.20% |
Social Security Employer (Company) | 6.20% | 6.20% |
Medicare Employee | 1.45% | 1.45% |
Medicare Employee in excess of $200,000 | 2.35% | 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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