Type of limitation
2017 limit 2018 limit
Elective deferrals to 401(k), 403(b) and 457(b) plans $18,000 $18,500
Annual benefit for defined benefit plans $215,000 $220,000
Contributions to defined contribution plans $54,000 $55,000
Contributions to SIMPLEs $12,500 $12,500
Contributions to IRAs $5,500 $5,500
Catch-up contributions to 401(k), 403(b) and 457(b) plans $6,000 $6,000
Catch-up contributions to SIMPLEs $3,000 $3,000
Catch-up contributions to IRAs $1,000 $1,000
Compensation limit for benefit purposes for qualified plans and SEPs $270,000 $275,000
Minimum compensation for SEP coverage $600 $600
Highly compensated employee threshold $120,000 $120,000
Minimum income for “key employee” status for top-heavy calculation $175,000 $175,000
Income subject to Social Security tax $127,200 $128,700

For a no-obligation discussion on the possible impact and steps you should take now, contact Meresa Morgan, our Audit Shareholder with significant experience in this area.

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