Retirement Plan Limits

Contact Us

2018 Retirement Plan Limits

  • Regulation

  • Annual Additions Limit for Defined Contribution Plans Section 415(c)(1)(A)

  • Annual Compensation Limit Section 401(a)(17)

  • Elective Deferral Limit Section 402(g)

  • 401(k) Catch Up Contribution Limit Section 414(v)(2)(B)(i)

  • Compensation Limit HCE Section 414(q)(1)(B)

  • Compensation Limit Key Employee Section 416(i)(1)(A)(i)

  • Social Security Taxable Wage Base
  • What is it?

  • Maximum total contributions and forfeitures that can be allocated to a participant’s account during the Plan Year

  • Maximum amount of compensation that may be considered when allocating contributions and performing discrimination testing

  • Maximum amount individual employee may contribute to 401(k) Plans, 403(b) Plans and SARSEP Plans

  • Maximum amount, in addition to 402(g) limit described above, that employee age 50 or older may contribute to 401(k) Plan

  • Annual compensation amount used to define “Highly Compensated Employee”

  • Annual compensation amount used to define “Key Employee”

  • Amount of income subject to Social Security Tax. For Retirement Plans, this amount is used when allocating a profit sharing contribution, IF the plan uses a “Permitted Disparity” (aka Integrated) formula
  • Does limit apply to Calendar or Plan Year?

  • Plan Year

  • Plan Year

  • Calendar Year

  • 401(k) Catch Up Contribution Limit Section 414(v)(2)(B)(i)

  • Plan Year

  • Plan Year

  • Plan Year for Retirement Plan Purposes (Calendar Year for Payroll Purposes)
  • 2018 Limit

  • Lesser of $55,000 or 100% of compensation for Plan Year ending on or after 01/01/18

  • $275,000 for Plan Year beginning on or after 01/01/18

  • $18,500 for 2018 Calendar Year

  • $6,000 for 2018 Calendar Year

  • $120,000 for Plan Year beginning on or after 01/01/18

  • $175,000 for Plan Year beginning on or after 01/01/18

  • $128,700 for Plan Year beginning on or after 01/01/18
  • Prior Year Limit (2017)

  • Lesser of $54,000 or 100% of compensation for Plan Year ending on or after 01/01/17

  • $270,000 for Plan Year beginning on or after 01/01/17

  • $18,000 for 2017 Calendar Year

  • $6,000 for 2017 Calendar Year

  • $120,000 for Plan Year beginning on or after 01/01/17

  • $175,000 for Plan Year beginning on or after 01/01/17

  • $127,200 for Plan Year beginning on or after 01/01/17