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The 2018 Retirement Plan Contribution Limits Are Here

DWC 10/19/17

The IRS has released the 2018 contribution limits! Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

The good news is that both the 401(k) deferral limit and overall contribution/benefit limits increased, as did the maximum compensation limit. Most of the others remain unchanged from their 2017 levels.

Here's a rundown of the 2018 limits:

Compensation and Benefit Limits 

  • Annual compensation limit
    • Increases from $270,000 to $275,000
  • Salary deferral limit for 401(k) and 403(b) plans
    • Increases from $18,000 to $18,500
  • Salary deferral limit for SIMPLE IRAs
    • Remains unchanged at $12,500 
  • Salary deferral limit for 457 plans
    • Increases from $18,000 to $18,500
  • Catch-up contribution limit for 401(k) plans
    • Remains unchanged at $6,000
  • Catch-up contribution limit for SIMPLE IRAs
    • Remains unchanged at $3,000 
  • Annual additions limit for defined contribution plans
    • Increases from $54,000 to $55,000
  • Annual additions limit for defined benefit plans
    • Increases from $215,000 to $220,000
  • Social Security Wage Base
    • Increases from $127,200 to $128,700

Testing Limits

  • Highly compensated employee
    • Remains unchanged at $120,000
  • Key employee based on officer status
    • Remains unchanged at $175,000
  • Key employee based on 1% owner compensation
    • Remains unchanged at $150,000

 You can find a chart of these limits from 2015 to 2018 here in the DWC Knowledge Center. For more information on contributions and other plan sponsor requirements, visit the Knowledge Center here.

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Topics: 401(k) Plan, 403(b), Defined Benefit, Defined Contribution, SIMPLE, 401(k) Contribution Limits, Plan Sponsor Requirements


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The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.