401(k) Retirement Plan Contribution Limit Increases for 2018; Most Other Limits are Stagnant

Retirement plan contribution limits are evaluated each year and indexed for inflation. Similar to previous years, low inflation rates have stagnated these limits. However, a few numbers have changed for 2018, including the 401(k) limit, which increased by $500, and contribution limits for defined contribution plans, which went up by $1,000.


Type of limit

2018 limit

Elective deferrals to 401(k), 403(b), 457(b)(2)

and 457(c)(1) plans


Contributions to defined contribution plans


Contributions to SIMPLEs


Contributions to IRAs


Catch-up contributions to 401(k), 403(b), 457(b)(2)

and 457(c)(1) plans


Catch-up contributions to SIMPLEs


Catch-up contributions to IRAs



If you’re not already maxing out your contributions to other plans, you still have an opportunity to save more in 2018. And if you turn age 50 in 2018, you can begin to take advantage of catch-up contributions.

Higher-income taxpayers should also be pleased that some limits on their retirement plan contributions that had been discussed as part of tax reform didn’t make it into the final legislation.

However, keep in mind that there are still additional factors that may affect how much you’re allowed to contribute (or how much your employer can contribute on your behalf). For example, income-based limits may reduce or eliminate your ability to make Roth IRA contributions or to make deductible traditional IRA contributions.

Contact us

Consistently contributing to a retirement plan can make a big difference when you reach retirement age. For more information about retirement planning or if you have questions about how much you can contribute to tax-advantaged retirement plans in 2018, call us at 949-860-9902 or click here to contact us.

© 2017