What Are Annual Limitations?
Qualified retirement plans are funded by contributions from employers and/or employees. These contributions are subject to a number of annual limitations. Compliance with these limitations is important since the qualification of the plan is at stake.
The following limits have increased for 2018:
- The Annual Addition Dollar Maximum increased to $55,000 from $54,000
- The Annual Compensation limit increased to $275,000 from $270,000
- The SEP Annual Compensation Limit increased to $275,000 from $270,000
- The Social Security Wage Base increased to $128,400 from $127,200
- Defined Benefit Plans increased to $220,000 from $215,000
WHAT ARE THE ANNUAL LIMITATIONS FOR 2018?
|2018 Limitations||2017 Limitations|
|Defined Benefit Dollar Maximum||$220,000||$215,000|
|Annual Addition Dollar Maximum||$55,000||$54,000|
|Employee 401(k)/403(b)/457 Contributions||$18,500||$18,000|
|Catch-up Contributions (Age 50 or older)||$6,000||$6,000|
|Highly Compensated Employee Threshold||$120,000||$120,000|
|Social Security Taxable Wage Base||$128,400||$127,200|
For a printable download of the 2018 limitations, click here
For our 2018 Annual Plan Deadlines Brochure, click here
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