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Retirement Planning Key Numbers 2017 and 2018

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Retirement Planning Key Numbers

Certain retirement plan and IRA limits are indexed for inflation each year, but only some of the limits eligible for a cost-of-living adjustment (COLA) have increased for 2018. Some of the key numbers for 2018 are listed below, with the corresponding limit for 2017. (The source for these 2018 numbers is IRS Notice 2017-64.)

Elective deferral limits 2017 2018
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 (includes Roth contributions) Lesser of $18,000 or 100% of participant's compensation ($24,000 if age 50 or older)2 Lesser of $18,500 or 100% of participant's compensation ($24,500 if age 50 or older)2
SIMPLE 401(k) plans and SIMPLE IRA plans1 Lesser of $12,500 or 100% of participant's compensation ($15,500 if age 50 or older) Lesser of $12,500 or 100% of participant's compensation ($15,500 if age 50 or older)
IRA contribution limits 2017 2018
Traditional and Roth IRAs Lesser of $5,500 or 100% of earned income ($6,500 if age 50 or older) Lesser of $5,500 or 100% of earned income ($6,500 if age 50 or older)
Defined benefit plan annual benefit limits 2017 2018
Annual benefit limit per participant Lesser of $215,000 or 100% of average compensation for highest three consecutive years Lesser of $220,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits (qualified plans, 403(b) plans, and SEP plans) 2017 2018
Annual addition limit per participant (employer contributions; employee pretax, after-tax, and Roth contributions; and forfeitures) Lesser of $54,000 or 100% (25% for SEP) of participant's compensation Lesser of $55,000 or 100% (25% for SEP) of participant's compensation

1 Must aggregate employee deferrals to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b) contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively a 20% maximum contribution).

2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

Retirement plan compensation limits 2017 2018
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs)

$270,000

$275,000

Compensation threshold used to determine a highly compensated employee

$120,000 (when 2017 is the look-back year)

$120,000 (when 2018 is the look-back year)

Compensation threshold used to determine a key employee in a top-heavy plan

$1 for more-than-5% owners

$175,000 for officers

$150,000 for more-than-1% owners

$1 for more-than-5% owners

$175,000 for officers

$150,000 for more-than-1% owners

Compensation threshold used to determine a qualifying employee under a SIMPLE plan

$5,000

$5,000

Compensation threshold used to determine a qualifying employee under a SEP plan

$600

$600

Income phaseout range for determining deductibility of
traditional IRA contributions for taxpayers:
2017 2018

1. Covered by an employer-sponsored plan and filing as:

 

 

  Single/Head of household

$62,000 - $72,000

$63,000 - $73,000

  Married filing jointly

$99,000 - $119,000

$101,000 - $121,000

  Married filing separately

$0 - $10,000

$0 - $10,000

2. Not covered by an employer-sponsored retirement
plan, but filing joint return with a spouse who is covered by a plan

$186,000 - $196,000

$189,000 - $199,000

Income phaseout range for determining ability to fund
a Roth IRA for taxpayers filing as:
2017 2018

  Single/Head of household

$118,000 - $133,000

$120,000 - $135,000

  Married filing jointly

$186,000 - $196,000

$189,000 - $199,000

  Married filing separately

$0 - $10,000

$0 - $10,000

IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Registered Representative of and Securities Offered Through Capital Synergy Partners, Member FINRA / SIPC 4400 MacArthur Blvd. Suite 230 Newport Beach, CA 92660 949-442-7413 Stephen Clifford, The Winfield Group, LLC and Capital Synergy Partners are unaffiliated entities.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.

Registered Representative of and Securities Offered Through Capital Synergy Partners, Member FINRA / SIPC
4400 MacArthur Blvd. Suite 850 Newport Beach, CA 92660 949-442-7413
Stephen Clifford, The Winfield Group, LLC and Capital Synergy Partners are unaffiliated entities.

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