2018 by the Numbers
A new year will be here soon. Here is what we know so far about 2018:
Retirement Plan Contribution Limits
-The contribution limit for 401(k), 403(b), and most 457 plans is increased to $18,500, up from $18,000 in 2017. The catch-up contribution for individuals over 50 remains unchanged at $6,000.
-The limit on IRA contributions remains $5,500, unchanged from 2017. There is a $1000 additional catch-up contribution for individuals over 50.
-The annual exclusion for gifts is $15,000 for 2018, up from $14,000 in 2017.
Social Security COLA
-The Social Security Cost-of-living Adjustment (COLA) for 2018 is 2%, a large bump compared to 0.3% for 2017 and no change for 2016.
-The Oregon tax rebate, commonly referred to as the kicker, is back. If tax revenue collected by the state of Oregon exceeds projections by more than 2%, the excess is refunded to taxpayers via a credit on their tax return. The state is expected to return $464 million of personal income taxes to taxpayers via 2017 Oregon tax returns.
Have you noticed the huge construction cranes at the Vancouver waterfront? We did and curiosity propelled us to tour Phase 1 of the $1.5-billion Vancouver Waterfront Project with Barry Cain, president, and owner of Gramor Development, Inc. Hard hats and safety vests donned, we saw the groundbreaking project take shape, literally.
Barry, and Jim Edwards, Gramor’s Project Manager, braved the rain as we walked the 40,000-square-foot restaurant buildings and Grant Street Pier. We’re already hungry for these dining options which are set to open near the end of summer 2018.
We appreciated the opportunity to see community enhancements and progress in action on this grand scale, knowing that the ripple effects will reach beyond the two-acre site’s shores of the Columbia.
We’re anxious to enjoy your contributions to our community, Jim and Barry. Thanks for the tour!
This week at Johnson Bixby
Office Hours Alert: Our staff is participating in a company-wide training November 1st-3rd and our Vancouver office will be closed during those days. We will check voice and email messages periodically, however, if you need immediate assistance, please contact our broker/dealer, KMS Financial Services, at (206) 441-2885 or (800) 578-5253. We will return to the office and regular business hours on Monday, November 6th.
Written By Melissa L. Spoharski, EA