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2018 Annual Retirement Plan Limits

The IRS announced retirement plan limits for 2018. 

See the chart below for limit increases.

Retirement Limits 2017 2018
Covered compensation limit $270,000 $275,000
Defined benefit maximum limit $215,000 $220,000
Defined contribution plan maximum limit $54,000 $55,000
Salary deferral limit [401(k), 457(b), 403(b)] $18,000 $18,500
Catch-up contribution limit (Age > 50) $6,000 $6,000
Highly compensated employee compensation limit $120,000 $120,000
Key employee compensation limit $175,000 $175,000
SEP maximum contribution limit $54,000 $55,000
SEP earnings limit $600 $600
SIMPLE salary deferral limit $12,500 $12,500
SIMPLE catch up contribution limit (Age >50) $3,000 $3,000
IRA contribution limit $5,500 $5,500
IRA catch-up contribution (Age > 50) $1,000 $1,000
Traditional IRA Deduction Phaseouts
Married Filing Jointly – one spouse is an active participant $186,000 to $196,000 $189,000 to $199,000
Married Filing Jointly – both taxpayers are active participants $99,000 to $119,000 $101,000 to $121,000
Single – taxpayer is an active participant $62,000 to $72,000 $63,000 to $73,000
Married filing separately $0 to $10,000 $0 to $10,000
Roth IRA Contribution Phaseouts
Married Filing Jointly $186,000 to $196,000 $189,000 to $199,000
Single $118,000 to $133,000 $120,000 to $135,000
Married Filing Separately $0 to $10,000 $0 to $10,000

Source: www.irs.gov/newsroom

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