IRS Indexed Limits

The IRS indexed dollar limits to qualified retirement plans for 2018 are provided in the table below. This update is provided for informational purposes and is not intended as legal advice.

ItemIRC Reference2017 Limit2018 Limit
401(k) and 403(b) Employee Deferral Limit1402(g)(1)$18,000$18,500
457 Employee Deferral Limit457(e)(15)$18,000$18,500
Catch-up Contribution2414(v)(2)(B)(i)$6,000$6,000
Defined Contribution Dollar Limit415(c)(1)(A)$54,000$55,000
Defined Benefit Dollar Limit415(b)(1)(A)$215,000$220,000
Compensation Limit3401(a)(17); 404(l)$270,000$275,000
Highly Compensated Employee Income Limit4414(q)(1)(B)$120,000$120,000
Key Employee Officer416(i)(1)(A)(i)$175,000$175,000
Social Security Taxable Wage Base $127,200$128,4005

1 Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.

2 Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans.

3 All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.

4 For the 2018 plan year, an employee who earns more than $120,000 in 2017 is an HCE. For the 2019 plan year, an employee who earns more than $120,000 in 2018 is an HCE.

5 The Social Security Administration changed the 2018 taxable wage base amount from $128,700 to $128,400 on Nov. 27, 2017.

 

Tax Credits For Retirement Plan Participants1

The chart below shows the percent of your contribution (up to $2,000) you are eligible to receive as a tax credit based on your annual adjusted gross income and filing status. See the IRS website for filing instructions.2

Tax CreditMarried, Filing JointlyHead of HouseholdAll Other Filers
50%$0 - $38,000$0 - $28,500$0 - $19,000
20%$38,001 - $41,000$28,501 - $30,750$19,001 - $20,500
10%$41,001 - $63,000$30,751 - $47,250$20,501 - $31,500
0%More than $63,000More than $47,250More than $31,500

1 The participant must be over the age of 18 and cannot be a full-time student or dependent.

2 The annual adjusted gross income limits will be adjusted for inflation. These limits are valid for 2018.