Must Know Facts

How much may a participant contribute to a 401(k) plan?

For calendar year 2018 the limit is $18,500

For calendar year 2017 the limit is $18,000 

These limits also apply to 403(b) plans for non-profit entities, and 457 plans covering governmental employees.  This limit is increased subject to cost-of-living increases.

When may a participant begin contributing "catch-up" 401(k) deferrals?

Effective January 1, 2002, 401(k) plans may permit catch-up contributions that allow participants age fifty (50) or older to contribute an additional amount over the 401(k) contribution dollar limit.  The additional amounts are $6,000 for 2018 and $6,000 for 2017.  A participant must reach age 50 before the end of the Plan Year to utilize this provision.

Retirement Plan Limits                

Source   2018 Limit   2017 Limit
401(k), 403(b) & 457 Employee Deferrals       18,500       18,000
Catch-up Contributions              6,000              6,000
Defined Contribution Dollar Limit       55,000       54,000
Defined Benefit Dollar Limit     220,000     215,000
Compensation Limit     275,000     270,000
Highly Compensated Employee Income Limit     120,000     120,000
Social Security Taxable Wage Base     128,400     127,200

Official 2018 IRS Pension Benefits & Contribution Limits - click here-