October 20, 2017

Defined contribution retirement plan maximum contribution limit goes up for 2018

After two years of leaving contribution limits unchanged, the IRS has announced that contribution limits for 2018 will be raised from $18,000 to $18,500. Catch-up contributions for those age 50 and up will remain the same at $6,000. The limits to IRA annual contributions and IRA catch-up contributions will stay unchanged, at $5,500 and $1,000 respectively.

2017 Limits 2018 Limits
401(k), 403(b), and 457 plans $18,000 $18,500
Age 50+ catch-up contribution (additional to the standard contribution) $6,000 $6,000
 
Traditional and Roth IRAs $5,500 $5,500
Age 50+ catch-up contribution (additional to the standard contribution) $1,000 $1,000

To view the IRS press release with detailed information, visit https://www.irs.gov/newsroom/irs-announces-2018-pension-plan-limitations-401k-contribution-limit-increases-to-18500-for-2018.