Tag Archives: 2018

New Exemptions to ObamaCare Released

“The Trump administration announced Monday that those who live in counties with no insurer or with only one choice will be able to apply for a hardship exemption from the mandate, which requires nearly all Americans to get health insurance or pay a penalty.” according to an article in CNN Money.

This means that 26% of Americans will be able to file for a hardship waiver, including everyone in the State of South Carolina, but only matters for the rest of this year.  The penalties for not having insurance are eliminated in 2019.

There is still a penalty for not having insurance…

Just a reminder that, while recent legislation did eliminate the penalty, it does not take affect until 2019.

Employer penalties in 2018 are at elast $2320 after the first tirty employees.

The individual Penalty is

  • $695 for each adult and $347.50 for each child, up to $2,085 per family, or
  • 2.5% of family income above the federal tax filing threshold, which the Kaiser Foundation calculator estimates is $10,650 for an average single filer

or $21,300 for the average family who file jointly in 2018

2018 Retirement Account Limits


How much can you contribute this year?

 Provided by Reeve Conover


In 2018, you have another chance to max out your retirement accounts. Here is a rundown of yearly contribution limits for the popular retirement savings vehicles.

IRAs. The 2018 limits are the same as in 2016: $5,500 for IRA owners who will be 49 and younger this year and $6,500 for IRA owners who will be 50 or older this year. These limits apply to both Roth and traditional IRAs.1

What if you own multiple IRAs? This $5,500/$6,500 limit applies to your total IRA contributions for a calendar year. So, for example, should you happen to have five IRAs, you could make an equal contribution of $1,100 (or $1,300) to each of them in 2017 or unequal contributions to them not exceeding the applicable $5,500/$6,500 limit.2

Keep in mind that you can fund your 2017 IRA(s) until April 17, 2018 (the 2017 federal income tax deadline). It is best to fund your IRA for a particular year right as that year starts, but if you procrastinated for any reason in 2017, you still have time.2

High earners may find their ability to make a full Roth IRA contribution restricted. This applies to a single filer or head of household whose adjusted gross income falls within the $120,000-135,000 range and to married couples whose AGIs land between $189,000-199,000. If your AGI exceeds the high ends of those phase-out ranges, you may not make a 2018 Roth IRA contribution. (For tax year 2017, the respective phase-out ranges are $118,000-133,000 and $186,000-196,000.)2,3

401(k)s, 403(b)s, and 457s. Each of these employee retirement plans have 2018 contribution limits of $18,500. The 2018 contribution limit is $24,500, however, if you will be 50 or older this year – that means you are eligible to make a “catch-up” contribution of up to $6,000 above the usual limit.1,3

Both 403(b) and 457(b) plans offer savers special catch-up contribution opportunities. If you participate in a 403(b) plan, you can also opt to take advantage of its 15-year rule: if you have 15 or more years of tenure and your average yearly contribution to the plan has been $5,000 or less, you can direct an extra $3,000 per year into the plan. If you are enrolled in a 457(b) plan sponsored by a state or local government agency, you can contribute up to double the standard annual limit each year if you are within three years of normal retirement age (as the plan defines). In 2017, that meant that you could put up to $36,000 into your 457(b) plan in that circumstance; in 2018, the limit becomes $37,000. You can make this “double contribution” and the standard catch-up contribution of up to $6,000 if you are 50 or older in 2018.4

SIMPLE IRAs and SEP-IRAs. In 2018, the contribution limit for a SIMPLE IRA is $12,500; those who will be 50 or older this year may contribute up to $15,500. Business owners need to match these annual employee contributions to at least some degree. Self-employed individuals can contribute as an employee and employer to a SIMPLE IRA.5

Business owners and the self-employed can also contribute to SEP-IRAs. All contributions to these accounts have to come from the business, and all contributions are tax deductible. The annual contribution limit on a SEP-IRA is very high – in 2018, it is either $55,000 or 25% of the business owner’s net self-employment income, whichever is lower.5

Reeve Conover may be reached at 843-800-8190 or reeve@reevewillknow.com.


This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.





1 – cbsnews.com/news/irs-allows-higher-retirement-savings-account-limits-in-2018/ [10/24/17]

2 – fool.com/retirement/2017/10/22/heres-the-2018-ira-contribution-limit.aspx [10/22/17]

3 – tinyurl.com/ybbqgf26 [10/20/17]

4 – investopedia.com/articles/personal-finance/111615/457-plans-and-403b-plans-comparison.asp px [12/18/17]

5 – tickertape.tdameritrade.com/retirement/2017/11/retirement-plans-small-entrepreneur-13586 [11/22/17]



IRS Adjusts 2018 HSA limits

On Monday the IRS announced a reduction to the 2018 Health Savings Account (HSA) family contribution limit to $6,850 from the previously set amount of $6,900. If you have already contributed the maximum amount to your Family HSA for 2018, this could mean that election changes may be required and excess contributions may need to be returned. Contact Participant Services for more information.

This change does not impact contribution limits for individual HSAs, Flexible Spending Accounts (FSAs), Commuter Reimbursement Accounts (CRAs) or QSEHRAs.

Blue Choice SC Formulary Changes

This is an announcement from Blue Choice:

BlueChoice HealthPlan continually evaluates our prescription drug formularies and drug management programs to ensure effective management of quality and costs. We work with a group of independent doctors and pharmacists to assess our pharmacy programs and get recommendations.

Based on the group’s feedback, BlueChoice® will make minimal changes to theformularies, Prior Authorization and Quantity Management programs. All changes go into effect Jan. 1, 2018, unless noted otherwise. These changes apply to the BlueChoice Tiered Prescription Drug List for our large group and CarolinaADVANTAGE plans. We will send this communication to our group administrators to notify them of the changes.

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Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA.
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