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19 October

New Retirement Plan Limits Announced for 2018

October 19, 2017 By Petros Koumantaros Announcements limits, irs, retirement plan, 401k, contribution  

The IRS has released the 2018 contribution limits! 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. Are you curiuos to see the changes over time? We have also updated our table of retirement plan limits over history.

Below is a quick overview of the 2018 retirement plan limits:

Compensation and Benefit Limits

  • Annual compensation limit increases from $270,000 to $275,000
  • Salary deferral limit for 401(k), 403(b), and 457 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

Plan Compliance 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

Existing clients are invited to contact their account manager to see how these limits may impact their organizations for 2018. Prospective clients and professional advisers are welcome to call our professional service sales team to request benefit illustrations or service proposals.

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ERISA Workplace Retirement Plan Limits

The federal government annually publishes updated qualified retirement plan limits, which impact the contributions, benefit accruals, and compliance of ERISA covered qualified retirement plans. The below tables summarize the most significant changes in recent history.

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