2018 IRS Limits Applicable to Retirement Plans
Certain IRS limits related to payroll and retirement plans change annually; however, for 2018 several limits have stayed the same. Below is a table of those limits for 2017 and 2018.
| DESCRIPTION | 2017 | 2018 |
| 401(K) and 403(b) tax-sheltered annuity plan elective deferrals | $18,000 | $18,500 |
| Additional catch-up contributions for individuals over age 50 | $6,000 | $6,000 |
| SIMPLE 401(k) and SIMPLE IRA plans with $12,500 as the dollar amount for each year | $12,500 | $12,500 |
| Additional catch-up contributions for SIMPLE 401(k) and SIMPLE IRA plans for individuals over age 50 | $3,000 | $3,500 |
| IRA contribution limit for individuals who are not active in another plan | $5,500 | $5,500 |
| Additional IRA catch-up contributions for individuals over age 50 | $1,000 | $1,000 |
| Employee annual compensation limit to be taken into account by plan | $270,000 | $275,000 |
| Annual additions under defined contribution plan may not exceed the lesser of 100% of the participant’s compensation or: | $54,000 | $55,000 |
| Social security tax wage limit | $127,000 | $128,700 |
Plan sponsors would be well advised to check with their payroll and other providers to assure that these IRS limits are properly applied for the 2018 year.
Related Resource
If you need more information regarding the limits noted above, please see COLA Increases for Dollar Limitations on Benefits and Contributions.
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