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IRA and 401(k) contribution limits for 2018

401(k) and IRA contribution limits
November 01, 2017

By Alliant Credit Union

Alliant financial consultants

Last week, the IRS announced the cost-of-living adjustments made to contribution limits and income thresholds for retirement plans for the 2018 tax year. This year, cost-of-living index increases were high enough to trigger adjustments to some IRS contribution limitations for 2018 vs 2017.  

401(k)

Traditional IRAs (individual retirement account)

Roth IRAs

 Summary of 2018 limits vs 2017

      2017 2018
Individual Retirement Accounts (IRAs)                                                       
IRA Contribution Limit $5,500 $5,500
IRA Catch-Up Contributions 1,000 1,000
 
IRA AGI Deduction Phase-out Starting at 
   
Joint Return $99,000 $101,000
Single or Head of Household 62,000 63,000
 
SEP
 

 
 
SEP Minimum Compensation $600 $600
SEP Maximum Contribution 54,000 55,000
SEP Maximum Compensation 270,000 275,000
 
SIMPLE Plans 
   
SIMPLE Maximum Contributions $12,500 $12,500
Catch-up Contributions 3,000 3,000
 
401(k), 403(b), Profit-Sharing Plans, etc.     
 
 
 
 
Annual Compensation $270,000 $275,000
Elective Deferrals 18,000 18,500
Catch-up Contributions 6,000 6,000
Defined Contribution Limits 54,000 55,000
ESOP Limits 1,080,000 1,105,000
 
Other
 
 
 
 
HCE Threshold $120,000 $120,000
Defined Benefit Limits 215,000 220,000
Key Employee 175,000 175,000
457 Elective Deferrals 18,000 18,500
Control Employee (board member or officer) 105,000 110,000
Control Employee (compensation-based) 215,000 220,000
Social Security Taxable Wage Limit 127,200 128,700

 

For more information on these updated contribution limits and income caps, consult your tax advisor.
 

Need help with your retirement plan? Visit our website or call 800-328-1935 to set up a no-cost, no-obligation financial planning session with a financial consultant with Alliant Retirement and Investment Services.


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