IRS Announces Key Retirement Plan Limits for 2018

Volume 40 | Issue 129

pdf icon Download this FYI Alert as a printable PDF

The IRS has issued Notice 2017-64 announcing the retirement plan limits for 2018.

Retirement Plan Limits

The table below lists the key 2018 limits side by side with the limits in effect for 2017 with changes bolded:

2018 2017
401(k)/403(b) elective deferral maximum       $       18,500    $     18,000
§415 defined benefit dollar maximum       $     220,000    $   215,000
§415 defined contribution annual addition maximum       $       55,000    $     54,000
§457(b) nonqualified deferred compensation limit       $       18,500    $     18,000
§401(a)(17) annual compensation limit       $     275,000    $   270,000
§414(q) highly compensated employee limit       $     120,000    $   120,000
§414(v) catch-up contribution limit       $        6,000    $       6,000
§416(i) top-heavy officer limit       $     175,000    $   175,000

 

The Section 401(a)(17) annual compensation limit for certain grandfathered participants in governmental plans in existence on July 1, 1993, rises to $405,000 for 2018 from $400,000.

In Closing

Our For Your Reference, a wallet-sized booklet showing retirement plan and other benefit limits, as well as various key Social Security and Medicare figures, will be available shortly from your consultant.