IRS Announces 2018 Retirement Plan Contribution Limits for 401(k)s and More

11.29.2017

The IRS has announced the retirement plan contribution limits for 2018.  Highlighted below are some of those limits.  For more detailed guidance, please see IRS Notice 2017-64.

  • Individual Retirement Accounts - The 2018 limit on annual contributions to an Individual Retirement Account is $5,500. The catch-up contribution limit, which is not subject to inflation adjustments, is $1,000.
  • 401(k)s - The 2018 annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan, is $18,500. The 2018 catch-up contribution limit for employees age 50 or older in these plans is $6,000.
  • Defined Benefit Plans (e.g., pension) - The 2018 limitation on the annual benefit of a defined benefit plan is $220,000.
  • Defined Contribution Plan (e.g., SEP IRAs and Solo 401(k)s) - The 2018 limitation for defined contribution plans is $55,000.
  • The SIMPLE (Savings Incentive Match Plan For Employees) Plan. The limit on SIMPLE retirement accounts for 2018 is $12,500. The SIMPLE catch-up limit is $3,000. 

 

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