Current Thinking

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
Annual Compensation $275,000 $270,000
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

About the Author

Martin Suechting




Comments

No comments.

Leave a Reply

Required fields are marked *