Retirement Plan Contribution Limits
COLA Increases for Dollar Limitations on Benefits and Contributions1
The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
| 2018 | 2017 | 2016 | |
| IRAS | |||
| IRA Contribution Limit | $5,500 | $5,500 |
$5,500 |
| IRA Catch-Up Contributions |
$1,000 | $1,000 |
$1,000 |
| SEP | |||
| SEP Minimum Compensation | $600 | $600 |
$600 |
| SEP Maximum Contribution | $55,000 | $54,000 |
$53,000 |
| SEP Maximum Compensation | $275,000 | $270,000 |
$265,000 |
| SIMPLE Plans | |||
| SIMPLE Maximum Contributions | $12,500 | $12,500 |
$12,500 |
| Catch-up Contributions | $3,000 | $3,000 |
$3,000 |
| 401(k), 403(b), SARSEP, Profit-Sharing Plans, etc. | |||
| Annual Compensation | $275,000 | $270,00 |
$265,000 |
| Elective Deferrals | $18,500 | $18,000 |
$18,000 |
| Catch-up Contributions | $6,000 | $6,000 |
$6,000 |
| Defined Contribution Limits | $55,000 | $54,000 |
$53,000 |
1Information sourced from the IRS.gov COLA Increases for Dollar Limitations on Benefits and Contribution website – IRS Notice 2017-64.