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IRS Announces 2018 Retirement Plan Limits

Doug Koenig,

December 11, 2017

Retiring Your Way, Growing Your Wealth

Articles

To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation. In October 2017 the IRS announced the numbers that will apply in 2018, as shown in the following table:

Item

2018 Limit

401(k) and 403(b) employee deferral limit

$18,500

457 employee deferral limit (most plans)

$18,500

Catch-up contribution limit

$6,000

Defined contribution dollar limit

$55,000

Defined benefit dollar limit

$220,000

Compensation limit

$275,000

Highly compensated employee income limit

$120,000

Key employee in a top-heavy plan

$175,000

Catch-up contributions are permitted by those employees who are 50 years of age or older during the calendar year.

Personal saving for retirement never has been more important. These tax benefits make saving a bit less painful.

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This blog article is for informational purposes only, and is not an advertisement for a product or service. The accuracy and completeness is not guaranteed and does not constitute legal or tax advice. Please consult with your own tax, legal, and financial advisors.


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