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.
For more tips and information regarding retirement plans, contact us.