The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
- Limits by plan type (IRA, 401(k), SEP, SIMPLE IRA, 403(b), 457(b), defined benefit)
- 2018 cost-of-living adjustments for pension plans and retirement-related items (IR-2017-177)
- COLA Table for prior years’ dollar limitations and Internal Revenue Code references.
|
2018 |
2017 |
2016 |
|||
| 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 |
||
| 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 |
1,105,000 220,000 |
1,080,000
215,000 |
1,070,000 210,000 |
||
| 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 |
||