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  • Chris Bean

2018 Retirement Plan Contribution Limits

Individual Retirement Accounts (IRAs)—the annual contribution limit for both traditional and Roth IRAs is $5,500 with a $1,000 catch-up contribution.

The SIMPLE—the annual contribution limit on SIMPLE retirement accounts for 2018 is $12,500. The SIMPLE catch-up limit is $3,000.

401(k) and Roth 401(k)—the annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan, is $18,500 for 2018.

401(k) Catch-Up—the catch-up contribution limit for employees age 50 or older is 6,000 for 2018. So long as you are at least 50 years old during the calendar year, you qualify to make a catch-up contribution.

SEP IRAs and Solo 401(k)—the annual contribution limit for self-employed and small business owners who use either a SEP IRA or a solo 401(k) is $55,000.

After-tax 401(k) contributions—when permitted by the sponsoring employer, the annual limit for after-tax 401(k) contributions is $55,000. This total includes all 401(k) contributions, but not catch-up contributions, and any employer matched contribution.

Defined Benefit Plans—the annual contribution limit for a defined benefit plan is $220,000.

* Details about the different characteristics and requirements for each plan can be found here. However, the best way to decide which plan is most effective for you is to contact your advisor to discuss which plan will most effectively help you reach your objectives.

Tags: Taxes

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