IRS Announces 2018 Retirement Plan Limits
It is fall, time for pumpkin carving, college football rivalries and of course, the IRS’s annual update to the retirement plan limits. After three years, the elective deferral limits for 401(k) and 403(b) plans will get a bump from $18,000 to $18,500. Consistent with last year, the annual compensation limit increased another $5,000 from $270,000 to $275,000, the defined contribution plan limit received another $1,000 bump, up to $55,000, and the defined benefit plan limit was again increased $5,000 to $220,000. Otherwise, there were no major changes made by the IRS to the annual limits as illustrated in our annual retirement plan limit chart. The Social Security Taxable Wage Base was increased again, but unlike last year (more than a 7% increase), this time there will only be a modest increase of $1,500 for 2018.
2017 2018
ELECTIVE DEFERRAL ANNUAL LIMITS
    401(k), 403(b) and SEPs  $18,000  $18,500
    457 Plans  $18,000  $18,500
    SIMPLE IRAs and 401(k)s  $12,500  $12,500
 CATCH-UP CONTRIBUTIONS
    401(k), 403(b) and SEPs  $6,000  $6,000
    SIMPLE IRAs and 401(k)s  $3,000  $3,000
 COMPENSATION LIMIT  $270,000  $275,000
 DEFINED BENEFIT PLAN LIMIT  $215,000  $220,000
 DEFINED CONTRIBUTION PLAN LIMIT  $54,000  $55,000
 HIGHLY COMPENSATED EMPLOYEE  $120,000  $120,000
 KEY EMPLOYEE
    Officers  $175,000  $175,000
    1% Owner  $150,000  $150,000
 SOCIAL SECURITY TAXABLE WAGE BASE  $127,200  $128,700
 

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