Increased Deferral Limits for 2018
To better prepare for retirement and as a part of your overall saving strategy, how much will you defer into your Ohio Deferred Compensation account in 2018?
Why Defer the Max?
- Deferring the annual maximum can lower your taxable income, so you might owe less in taxes.
- Compounding. The sooner you put money into your account, the faster it can grow. Time Is Money!
- The biggest impact you can make on your account is NOT by choosing the “hottest fund.” It’s by deferring more into your account.
The Internal Revenue Service recently announced employee annual deferral limits for 2018 will increase. Each year, the IRS sets limits on the amount of wages that you can defer. These limits are tied to inflation statistics, which are recalculated each fall for the following calendar year.
Annual Deferral Limits 2018
|Regular Deferral Limit||$18,500|
|Age 50-Plus Deferral Limit||$24,500|
|Catch-up Deferral Limit||up to $37,000|
Annual Deferral Limits 2017
|Regular Deferral Limit||$18,000|
|Age 50-Plus Deferral Limit||$24,000|
|Catch-up Deferral Limit||up to $36,000|