Annual Plan Limits

The IRS is responsible for determining the annual dollar limits for defined contribution and defined benefit retirement plans.  Below is a chart detailing the current limits.

2018 2017 2016
Compensation $275,000 $270,000 $265,000
Limits on benefits and contributions:
Defined contribution plans $55,000 $54,000 $53,000
Defined benefit plans $220,000 $215,000 $210,000
401(k), 403(b) and most 457 plan elective deferrals $18,500 $18,000 $18,000
SIMPLE plan elective deferrals $12,500 $12,500 $12,500
IRA $5,500 $5,500 $5,500
Catch-up contributions:
401(k), 403(b) and 457 plans $6,000 $6,000 $6,000
SIMPLE plans $3,000 $3,000 $3,000
IRA $1,000 $1,000 $1,000
“Highly Compensated” definition $120,000 $120,000 $120,000
“Key Employee” definition:
Officer $175,000 $175,000 $170,000
1% Owner $150,000 $150,000 $150,000
Social Security:
Taxable wage base $128,700 $127,200 $118,500
Social Security tax rate (employer) 6.20% 6.20% 6.20%
Medicare tax rate 1.45% 1.45% 1.45%
Combined FICA/Med tax rate 7.65% 7.65% 7.65%