401k and Retirement Plan Limits for the Tax Year 2018

On October 19, 2017, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans

and other retirement-related items for the tax year of 2018.

Retirement Savings

Highlights of Changes for 2018

The contribution limit for employees who participate in 401k, 403b, most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver’s credit all increased for 2018.


Chart of Select Limits
401k Plan Limits for Year 2018 2017 2016 2015 2014 2013 2012
401k Elective Deferrals $18,500 $18,000 $18,000 $18,000 $17,500 $17,500 $17,000
Annual Defined Contribution Limit $55,000 $54,000 $53,000 $53,000 $52,000 $51,000 $50,000
Annual Compensation Limit $275,000 $270,000 $265,000 $265,000 $260,000 $255,000 $250,000
Catch-Up Contribution Limit $6,000 $6,000 $6,000 $6,000 $5,500 $5,500 $5,500
Highly Compensated Employees $120,000 $120,000 $120,000 $120,000 $115,000 $115,000 $115,000
 
Non-401k Related Limits
403b/457 Elective Deferrals $18,500 $18,000 $18,000 $18,000 $17,500 $17,500 $17,000
SIMPLE Employee Deferrals $12,500 $12,500 $12,500 $12,500 $12,000 $12,000 $11,500
SIMPLE Catch-Up Deferral $3,000 $3,000 $3,000 $3,000 $2,500 $2,500 $2,500
SEP Minimum Compensation $600 $600 $600 $600 $550 $550 $550
SEP Annual Compensation Limit $275,000 $270,000 $265,000 $265,000 $260,000 $255,000 $250,000
Social Security Wage Base $128,700 $127,200 $118,500 $118,500 $117,000 $113,700 $110,100