The IRS has released new guidelines for the 2018 Contribution Limits for company-sponsored retirement plans and they’ve increased! If you’re not sure what they are, Leading Retirement Solutions has you covered.
Retirement Plan Maximum Contributions
IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.
Contribution Highlights for 2018
- $18,500 – The employee contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
- $6,000 – The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
- $55,000 – The total employee + employer contribution that can be made to a defined contribution plan under Section 415(c)(1)(A) is increased from $54,000 to $55,000.
| 2018 | 2017 | 2016 | |
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
| Annual Compensation | 275,000 | 270,000 | 265,000 |
| Elective Deferrals | 18,500 | 18,000 | 18,000 |
| Catch-up Contributions | 6,000 | 6,000 | 6,000 |
| Defined Contribution Limits | 55,000 | 54,000 | 53,000 |
| ESOP Limits | 1,105,000 | 1,080,000 | 1,070,000 |
| 220,000 | 215,000 | 210,000 | |
| Other | |||
| HCE Threshold | 120,000 | 120,000 | 120,000 |
| Defined Benefit Limits | 220,000 | 215,000 | 210,000 |
| Key Employee | 175,000 | 175,000 | 170,000 |
| 457 Elective Deferrals | 18,500 | 18,000 | 18,000 |
| Control Employee (board member or officer) | 110,000 | 105,000 | 105,000 |
| Control Employee (compensation-based) | 220,000 | 215,000 | 215,000 |
| Taxable Wage Base | 128,700 | 127,200 | 118,500 |
| IRAs | |||
| IRA Contribution Limit | 5,500 | 5,500 | 5,500 |
| IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 |
| IRA AGI Deduction Phase-out Starting at | |||
| Joint Return | 101,000 | 99,000 | 98,000 |
| Single or Head of Household | 63,000 | 62,000 | 61,000 |
| SEP | |||
| SEP Minimum Compensation | 600 | 600 | 600 |
| SEP Maximum Contribution | 55,000 | 54,000 | 53,000 |
| SEP Maximum Compensation | 275,000 | 270,000 | 265,000 |
| SIMPLE Plans | |||
| SIMPLE Maximum Contributions | 12,500 | 12,500 | 12,500 |
| Catch-up Contributions | 3,000 | 3,000 | 3,000 |
Additional information can be found on the IRS website.
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