New 2018 401(k) contribution limits

The employee 401(k) contribution limit is increasing in 2018. Employees will be allowed to contribute a maximum of $18,500 to their 401(k) plans in 2018. This is up from $18,000 in 2017.

The last time contribution limits increased was in 2015, when they went from $17,500 to $18,000.

Social Security Tax changes in 2018

If you earn more, you’ll pay slightly more Social Security tax in 2018.

Employees will continue to pay a 6.2 percent Social Security tax on their earnings, but the amount of earnings subject to that tax is going up.

Employees will be liable for the Social Security tax until their earnings for the year exceed $128,700 in 2018. This is up from $127,200 in 2017.

Earnings above $128,700 will not be subject to Social Security tax.

IRS REPEATS WARNINGS ABOUT PHONE SCAMS.

Scammers who pretend to be from the IRS are calling people and telling them that they owe money. A big red flag for these scams is an angry, threatening call from someone urging immediate payment. This is not how the IRS operates. Taxpayers should remember their first contact with the IRS will not be a call from out of the blue, but through official correspondence sent through the mail.

Additionally, it is important for taxpayers to know that the IRS: ● Never asks for credit card or debit card information over the telephone. ● Never insists that taxpayers use a specific payment method to pay tax obligations. ● Never requests immediate payment over the telephone. ● Never asks for PINs, passwords, or similar confidential access information.