The IRS has released new guidelines for the 2018 Contribution Limits for company-sponsored retirement plans and they’ve increased! If you’re not sure what they are, Leading Retirement Solutions has you covered.

Retirement Plan Maximum Contributions
IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.

Contribution Highlights for 2018

  • $18,500 – The employee contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
  • $6,000 – The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
  • $55,000 – The total employee + employer contribution that can be made to a defined contribution plan under Section 415(c)(1)(A) is increased from $54,000 to $55,000.
2018 2017 2016
   
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation 275,000 270,000 265,000
Elective Deferrals 18,500 18,000 18,000
Catch-up Contributions 6,000 6,000 6,000
Defined Contribution Limits 55,000 54,000 53,000
ESOP Limits 1,105,000 1,080,000 1,070,000
220,000 215,000 210,000
       
Other
HCE Threshold 120,000 120,000 120,000
Defined Benefit Limits 220,000 215,000 210,000
Key Employee 175,000 175,000 170,000
457 Elective Deferrals 18,500 18,000 18,000
Control Employee (board member or officer) 110,000 105,000 105,000
Control Employee (compensation-based) 220,000 215,000 215,000
Taxable Wage Base 128,700 127,200 118,500
       
IRAs
IRA Contribution Limit 5,500 5,500 5,500
IRA Catch-Up Contributions 1,000 1,000 1,000
IRA AGI Deduction Phase-out Starting at
Joint Return 101,000 99,000 98,000
Single or Head of Household 63,000 62,000 61,000
SEP
SEP Minimum Compensation 600 600 600
SEP Maximum Contribution 55,000 54,000 53,000
SEP Maximum Compensation 275,000 270,000 265,000
SIMPLE Plans
SIMPLE Maximum Contributions 12,500 12,500 12,500
Catch-up Contributions 3,000 3,000 3,000

Additional information can be found on the IRS website.
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