Breaking News: New IRS Pension Plan Limits For 2018 Announced

Breaking News: New IRS Pension Plan Limits For 2018 Announced

October 24, 2017

On Friday, the IRS announced their 2018 Pension Plan limits. A number of important limits have increased, such as the Defined Contribution and Defined Benefit dollar limits and the elective deferral limit. Some have stayed the same, though, such as the catch-up contribution limits.

This table shows the 2018 limits and how they have changed since last year:

Benefit Limit

2018 Amount

Change Over 2017

IRC §415(b)(1)(A) Defined Benefit Dollar Limit for Plan Years Ending in 2018



IRC §415(c)(1)(A) Defined Contribution Dollar Limit for Plan Years Ending in 2018



Elective Deferral Limit for 401(k), 403(b) and 457(b) Plans IRC §§402(g)(1), 457(e)(15)



Catch-Up Limit for 401(k), 403(b) and 457(b) (gov. only) Plans (age 50+)



Minimum Compensation Amount for SEPs (Non-SIMPLE) IRC §408(k)(2)(C)



Maximum Compensation Limit for SEPs - IRC §§408(k)(3)(C), 408(k)(6)(D)(ii), Qualified Plans, IRC §§401(a)(17), 404(l) Plan Years beginning in 2018



Highly Compensated Employee Definitional Limits IRC §414(q)(1)(B)



ESOP Payout Limits IRC §409(o)(1)(C)(ii)

$220,0007 $1,105,000



SS Taxable Wage Base



Contribution Limit for SIMPLE IRC §408(p)(2)(E)



Catch-Up Limits for SIMPLE 401(k) Plan (age 50+)



Key Employee Officer Comp. IRC §416(i)(1)(A)(i)



Contribution Limit to an IRA



Catch-Up Limit to an IRA (age 50+)



If you have any questions about the new limits or retirement plans in general, feel free to contact me at any time.

About Kenny Phan

Kenny Phan is a Managing Partner at FinancialFocus Retirement Plan Services, a 3(16) fiduciary. He works as a pension specialist who partners with financial professionals to design and implement pension plans. His area of expertise is customized defined benefit, defined contribution, and 401(k) plans. Serving financial advisors and businesses in the greater Phoenix area, he is supported by FinancialFocus Retirement Plan Services. Together, they provide comprehensive plan design consultation, administration, document installation, compliance testing, as well as IRS and DOL reporting for qualified retirement plans.