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
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