[co-author: Julie Wagner]
The Internal Revenue Service today released the 2018 dollar limits for retirement plans, as adjusted under Code Section 415(d). We have summarized the new limits (along with the limits from the last few years) in the chart below.
2018 Qualified Plan Limits
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|
Type of Limitation |
2018 |
2017 |
2016 |
2015 |
2014 |
|
Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1)) |
$18,500 |
$18,000 |
$18,000 |
$18,000 |
$17,500 |
|
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate) |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$5,500 |
|
SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$2,500 |
|
415 limit for Defined Benefit Plans |
$220,000 |
$215,000 |
$210,000 |
$210,000 |
$210,000 |
|
415 limit for Defined Contribution Plans |
$55,000 |
$54,000 |
$53,000 |
$53,000 |
$52,000 |
|
Annual Compensation Limit |
$275,000 |
$270,000 |
$265,000 |
$265,000 |
$260,000 |
|
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 |
$405,000 |
$400,000 |
$395,000 |
$395,000 |
$385,000 |
|
Highly Compensated Employee 414(q)(1)(B) |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
$115,000 |
|
Key employee in top heavy plan (officer) |
$175,000 |
$175,000 |
$170,000 |
$170,000 |
$170,000 |
|
SIMPLE Salary Deferral |
$12,500 |
$12,500 |
$12,500 |
$12,500 |
$12,000 |
|
Tax Credit ESOP Maximum balance |
$1,105,000 |
$1,080,000 |
$1,070,000 |
$1,070,000 |
$1,050,000 |
|
Amount for Lengthening of 5-Year ESOP Period |
$220,000 |
$215,000 |
$210,000 |
$210,000 |
$210,000 |
|
Taxable Wage Base |
$128,700 |
$127,200 |
$118,500 |
$118,500 |
$117,000 |
|
IRAs for individuals 49 and below |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
|
IRAs for individuals 50 and above |
$6,500 |
$6,500 |
$6,500 |
$6,500 |
$6,500 |
|
FICA Tax for employees and employers |
7.65% |
7.65% |
7.65% |
7.65% |
7.65% |
|
Social Security Tax for employees and employers |
6.2% |
6.2% |
6.2% |
6.2% |
6.2% |
|
Medicare Tax for employers and employees |
1.45% |
1.45% |
1.45% |
1.45% |
1.45% |
|
Additional Medicare Tax* |
.9% of comp
>$200,000 |
.9% of comp
>$200,000 |
.9% of comp
>$200,000 |
.9% of comp
>$200,000 |
.9% of comp
>$200,000 |
--> Scroll to see full table data
*For taxable years beginning after 12/31/12, an employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year for single/head of household filing status ($250,000 for married filing jointly).
[View source.]
