Annual Contribution Limits

Brittany Pickell of Next Generation Services Shares Insights on Self-Directed Retirement Plans on Asset TV

For the original version on PRWeb visit: https://www.prweb.com/releases/2018/07/prweb15636583.htm

July 20, 2018 3:13am

Director of Marketing and Sales for Roseland, N.J. Firm Discusses Building Retirement Wealth through Alternative Assets and the Company’s Approach to Working with Female Investors

ROSELAND, N.J. (PRWEB) July 20, 2018

Brittany Pickell of Next Generation Services in Roseland, N.J. was interviewed twice in June on the financial services video platform, Asset TV, in segments on self-direction as a retirement wealth-building strategy. The outlet, for financial professionals and investors, provides informational and educational resources on a variety of financial topics and news. Financial advisors, CPAs, retirement services providers, lenders, investors and others who are members of Asset TV can access the content provided on its Akademia continuing education channel and earn CEUs.

In the June 12 interview on Akademia, Pickell provided an overview of self-directed retirement plans and the alternative assets these plans allow, discussed the importance of working with a plan administrator and asset custodian, and shared how Next Generation supports its clients.

“We appreciated the opportunity to share our message with the Asset TV community and spread the word about self-directed retirement plans,” said Pickell. “Through conversations like these, we hope to positively impact retirement planning for investors everywhere by focusing on education and awareness.”

Pickell also appeared on Asset TV’s Alpha Female segment, for women in finance, in which she talked about working for a women-owned business, the individuals best suited to self-direct their retirement investments, and the importance of having confidence to make smart investment decisions. Next Generation was founded in 2004 by CEO Jaime Raskulinecz.

Next Generation Services provides full account administration for self-directed retirement plans; its sister company, Next Generation Trust Company, serves as the custodian for the assets within clients’ plans. Self-direction allows for a broad array of nontraditional investments, including real estate, precious metals, notes and private equity. The company will participate in a self-directed IRA master class on Asset TV on August 15.

Both interviews are available on Next Generation’s YouTube channel at http://bit.ly/NextGenYouTube. For more information about self-directed retirement plans, visit http://www.NextGenerationTrust.com or contact Next Generation at Info(at)NextGenerationTrust.com or 1.888.857.8058.

About Next Generation
Next Generation Services provides comprehensive account administration and transaction support for self-directed retirement plans. Next Generation’s neutral, third-party professionals expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. Its sister company, Next Generation Trust Company, a trust company chartered in South Dakota, acts as custodian for these self-directed retirement plans. For more information on self-directing a retirement plan, visit http://www.NextGenerationTrust.com, call toll free 1.888.857.8058 or e-mail NewAccounts@NextGenerationTrust.com.

In the June 12 interview on Akademia, Pickell provides an overview of self-directed retirement plans and the alternative assets these plans allow, discussed the importance of working with a plan administrator and asset custodian, and shared how Next Generation supports its clients.

IRS Revises Contribution Limit for Health Savings Accounts

Taxpayers with Self-Directed HSAs May Contribute Higher Amount under Rev. Proc. 2018-27

In an announcement on Thursday, April 26, 2018, the IRS announced a modification to the annual limitation on deductions to health savings accounts, for calendar year 2018. The HSA contribution limits allowed for taxpayers with family coverage under a high-deductible health plan (HDHP) have been increased (actually, returned to previous limits). Under Rev. Proc. 2018-27, taxpayers will be allowed to treat $6,900 as the annual limitation instead of the $6,850 limitation (previously announced in March with Rev. Proc. 2018-18). Just as with all retirement plans and HSAs, individuals with self-directed HSAs will also be eligible for the higher contribution limit for 2018.

Earlier this year, new calculations were mandated with the passage of the Tax Cut and Jobs Act, which in turn lowered the HSA contribution limit for those with family coverage to $6,850 (from $6,900). The bill, passed in late December 2017, stipulated those calculations be taken on various inflation-adjusted amounts, which included HSA limitations.

However, after the IRS announced that lower limit, it heard complaints from individual taxpayers, employers and payroll administrators, who stated that the change would incur “unanticipated administrative and financial burdens.” In addition, some qualified taxpayers had already made the maximum contribution for 2018 under the lower amount or had made annual salary reduction elections for HSA contributions based on the $6,900 limit that was announced earlier last year (before the tax bill passed and revised limits came to be).

Contribution limits for your self-directed HSA

In a nutshell (although somewhat complicated):

  • The IRS is allowing taxpayers to treat $6,900 as the annual limitation on deductions for an individual with HDHP family coverage
  • An individual who receives a distribution from an HSA in excess of the $6,850 limit published in Rev. Proc. 2018-18 may treat that distribution as the result of a “mistake of fact due to reasonable cause” under Q&A-37 of Notice 2004-50.
  • The portion of a distribution (including earnings) that an individual repays to the HSA by April 15, 2019, will not be included in the individual’s income under Sec. 223(f)(2) or be subject to the 20% additional tax under Sec. 223(f)(4).
  • The repayment will not be subject to the excise tax on excess contributions under Sec. 4973(a)(5).

There are other stipulations about HSA contributions, distributions, and deductions that all taxpayers with health savings accounts should be aware of. We recommend you consult your tax advisor about how these may affect you.

If you’d like to open a self-directed HSA, our professionals at Next Generation can answer all your questions—in easy-to-understand language—and help you get your account open. Read more about self-directed health savings accounts on our website, or contact us at Info@NextGenerationTrust.com or 1.888.857.8058.

SIMPLE IRA Contribution Limits

Salary reduction contributions

The amount an employee contributes from their salary to a SIMPLE IRA cannot exceed $12,500 in 2015 – 2018.

If an employee participates in any other employer plan during the year and has elective salary reductions under those plans, the total amount of the salary reduction contributions that an employee can make to all the plans he or she participates in is limited to $18,500 in 2018 ($18,000 in 2015 – 2017). See more than one plan.

  • Catch-up contributions. If permitted by the SIMPLE IRA plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The catch-up contribution limit for SIMPLE IRA plans is $3,000 in 2015 – 2018.

Employer matching contributions

The employer is generally required to match each employee’s salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee’s compensation. This requirement does not apply if the employer makes non-elective contributions instead.

  • Lower percentage. An employer may choose to make a matching contribution less than 3%, but it must be at least 1% and for no more than 2 out of 5 years. See Notice 98-4 for more information. The employer must notify the employees of the lower match within a reasonable period before the 60-day election period for the calendar year.

Visit the IRS website for additional information.

Coverdell ESA Contribution Limits

You may be able to contribute to a Coverdell ESA to finance the beneficiary’s qualified education expenses. Contributions must be made in cash, and they’re not deductible. Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions. Organizations, such as corporations and trusts can also contribute regardless of their adjusted gross income. Contributors must contribute by the due date of their tax return (not including extensions). There’s no limit to the number of accounts that can be established for a particular beneficiary; however, the total contribution to all accounts on behalf of a beneficiary in any year can’t exceed $2,000.


Visit the IRS website for more information.

HSA Contribution Limits

IRA Contribution Limits

For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:

  • $5,500 ($6,500 if you’re age 50 or older), or
  • your taxable compensation for the year, if your compensation was less than this dollar limit.

The IRA contribution limit does not apply to:

  • Rollover contributions
  • Qualified reservist repayments


Visit the IRS website for more information including:

  • Claiming a tax deduction for you IRA contribution
  • Roth IRA contribution limitations based on filing status and income
  • IRA contributions after age 70 ½
  • Spousal IRAs