Return to The Money Mentor Blog

IRA and 401(k) contribution limits for 2018 vs 2017

401(k) and IRA contribution limits
January 23, 2018

By Alliant Credit Union

Alliant financial consultants

Last week, the IRS announced the cost-of-living adjustments made to contribution limits and income thresholds for retirement plans for the 2018 tax year. This year, cost-of-living index increases were high enough to trigger adjustments to some IRS contribution limitations for 2018 vs 2017.  


Traditional IRAs (individual retirement account)

Roth IRAs

 Summary of 2018 limits vs 2017

      2017 2018
Individual Retirement Accounts (IRAs)                                                       
IRA Contribution Limit $5,500 $5,500
IRA Catch-Up Contributions 1,000 1,000
IRA AGI Deduction Phase-out Starting at 
Joint Return $99,000 $101,000
Single or Head of Household 62,000 63,000

SEP Minimum Compensation $600 $600
SEP Maximum Contribution 54,000 55,000
SEP Maximum Compensation 270,000 275,000
SIMPLE Maximum Contributions $12,500 $12,500
Catch-up Contributions 3,000 3,000
401(k), 403(b), Profit-Sharing Plans, etc.     
Annual Compensation $270,000 $275,000
Elective Deferrals 18,000 18,500
Catch-up Contributions 6,000 6,000
Defined Contribution Limits 54,000 55,000
ESOP Limits 1,080,000 1,105,000
HCE Threshold $120,000 $120,000
Defined Benefit Limits 215,000 220,000
Key Employee 175,000 175,000
457 Elective Deferrals 18,000 18,500
Control Employee (board member or officer) 105,000 110,000
Control Employee (compensation-based) 215,000 220,000
Social Security Taxable Wage Limit 127,200 128,700


For more information on these updated contribution limits and income caps, consult your tax advisor.

Need help with your retirement plan? Visit our website or call 800-328-1935 to set up a no-cost, no-obligation financial planning session with a financial consultant with Alliant Retirement and Investment Services.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Alliant Credit Union and Alliant Retirement and Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. The financial consultants of Alliant Retirement and Investment Services are registered representatives of LPL Financial. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KY, LA, MA, MD, ME, MI, MN, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY.

Not NCUA Insured

No Credit Union Guarantee

May Lose Value

The LPL Financial Registered Representatives associated with this site may discuss and/or transact securities business with residents of all 50 states.
*Financial consultants registered with LPL Financial.