---
title: The 2018 Retirement Plan Contribution Limits Are Here
description: Find the 2018 401(k) and IRA contribution limits recently released by the IRS. The list includes both compensation and benefit limits and testing limits.
image: https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_rr_png_category.png
---

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### [Decoding the Alphabet Soup: What’s With All the Acronyms | Part 4](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-4)

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# The 2018 Retirement Plan Contribution Limits Are Here

[ DWC ](https://www.dwc401k.com/blog/author/dwc) |

 Published: 10/19/2017 

|

[401(k) Plan](https://www.dwc401k.com/blog/topic/401k-plan), [403(b)](https://www.dwc401k.com/blog/topic/403b), [Defined Benefit](https://www.dwc401k.com/blog/topic/defined-benefit), [Defined Contribution](https://www.dwc401k.com/blog/topic/defined-contribution), [SIMPLE](https://www.dwc401k.com/blog/topic/simple), [401(k) Contribution Limits](https://www.dwc401k.com/blog/topic/401k-contribution-limits), [Plan Sponsor Requirements](https://www.dwc401k.com/blog/topic/plan-sponsor-requirements), [Regulatory Round-Up](https://www.dwc401k.com/blog/topic/regulatory-round-up)

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 ](https://www.dwc401k.com/knowledge-center#chartModal)in the DWC Knowledge Center. For more information on contributions and other plan sponsor requirements, visit the Knowledge Center [here](https://www.dwc401k.com/plan-sponsor-requirements).

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