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.
