2018 Annual Retirement Plan Limits
By Mark FisselPosted on October 31st, 2017
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