• IRS Announces 2018 Retirement Plan Contribution Limits for 401(k)s and More
  • December 12, 2017 | Author: Joshua B. Beisker
  • Law Firm: Underberg & Kessler LLP - Rochester Office
  • The IRS has announced the retirement plan contribution limits for 2018. Highlighted below are some of those limits. For more detailed guidance, please see IRS Notice 2017-64.

    • Individual Retirement Accounts - The 2018 limit on annual contributions to an Individual Retirement Account is $5,500. The catch-up contribution limit, which is not subject to inflation adjustments, is $1,000.

    • 401(k)s - The 2018 annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan, is $18,500. The 2018 catch-up contribution limit for employees age 50 or older in these plans is $6,000.

    • Defined Benefit Plans (e.g., pension) - The 2018 limitation on the annual benefit of a defined benefit plan is $220,000.

    • Defined Contribution Plan (e.g., SEP IRAs and Solo 401(k)s) - The 2018 limitation for defined contribution plans is $55,000.

    • The SIMPLE (Savings Incentive Match Plan For Employees) Plan. The limit on SIMPLE retirement accounts for 2018 is $12,500. The SIMPLE catch-up limit is $3,000.