Maximum Benefits and Contributions Limits - Employee Benefits Legal Resource Site

Carol V. Calhoun, Counsel
Venable LLP
600 Massachusetts Avenue, NW
Washington, DC 20001
Phone: (202) 344-4715
Fax: (202) 344-8300
Mobile: (202) 441-5592
E-mail: Click here to send e-mail.

Type of Limitation	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003	2002	2001	2000	1999	1998	1997	1996
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)	$18,500	$18,000	$18,000	$18,000	$17,500	$17,500	$17,000	$16,500	$16,500	$16,500	$15,500	$15,500	$15,000	$14,000	$13,000	$12,000	$11,000	$10,500	$10,500	$10,000	$10,000	$9,500	$9,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups)	$18,500	$18,000	$18,000	$18,000	$17,500	$17,500	$17,000	$16,500	$16,500	$16,500	$15,500	$15,500	$15,000	$14,000	$13,000	$12,000	$11,000	$8,500	$8,000	$8,000	$8,000	$7,500	N/A
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans	$6,000	$6,000	$6,000	$6,000	$5,500	$5,500	$5,500	$5,500	$5,500	$5,500	$5,000	$5,000	$5,000	$4,000	$3,000	$2,000	$1,000	N/A	N/A	N/A	N/A	N/A	N/A
Defined Benefit Plans	$220,000	$215,000	$210,000	$210,000	$210,000	$205,000	$200,000	$195,000	$195,000	$195,000	$185,000	$180,000	$175,000	$170,000	$165,000	$160,000	$160,000	$140,000	$135,000	$130,000	$130,000	$125,000	$120,000
Defined Contribution Plans (annual additions limit)	$55,000	$54,000	$53,000	$53,000	$52,000	$51,000	$50,000	$49,000	$49,000	$49,000	$46,000	$45,000	$44,000	$42,000	$41,000	$40,000	$40,000	$35,000	$30,000	$30,000	$30,000	$30,000	$30,000
Annual Compensation Limit	$275,000	$270,000	$265,000	$265,000	$260,000	$255,000	$250,000	$245,000	$245,000	$245,000	$230,000	$225,000	$220,000	$210,000	$205,000	$200,000	$200,000	$170,000	$170,000	$160,000	$160,000	$160,000	$150,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993	$405,000	$400,000	$395,000	$395,000	$385,000	$380,000	$375,000	$360,000	$360,000	$360,000	$345,000	$335,000	$325,000	$315,000	$305,000	$300,000	$295,000	$285,000	$275,000	$270,000	$265,000	N/A	N/A
Highly Compensated Employee (“HCEs”)	$120,000	$120,000	$120,000	$120,000	$115,000	$115,000	$115,000	$110,000	$110,000	$110,000	$105,000	$100,000	$100,000	$95,000	$90,000	$90,000	$90,000	$85,000	$85,000	$80,000	$80,000	$80,000	N/A
Key Employee/Officer	$175,000	$175,000	$170,000	$170,000	$170,000	$165,000	$165,000	$155,000	$155,000	$160,000	$150,000	$145,000	$140,000	$135,000	$130,000	$130,000	$130,000	N/A	N/A	N/A	N/A	N/A	N/A
Individual Retirement Accounts (“IRAs”), for individuals 49 and below	$5,500	$5,500	$5,500	$5,500	$5,500	$5,500	$5,000	$5,000	$5,000	$5,000	$5,000	$4,000	$4,000	$4,000	$3,000	$3,000	$3,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
Individual Retirement Accounts (“IRAs”), for individuals 50 and above	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,000	$6,000	$6,000	$6,000	$6,000	$5,000	$5,000	$4,500	$3,500	$3,500	$3,500	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
SIMPLE Retirement Accounts	$12,500	$12,500	$12,500	$12,500	$12,000	$12,000	$11,500	$11,500	$11,500	$11,500	$10,500	$10,500	$10,000	$10,000	$9,000	$8,000	$7,000	$6,500	$6,000	$6,000	$6,000	$6,000	N/A
SEP Coverage	$600	$600	$600	$600	$550	$550	$550	$550	$550	$550	$500	$500	$450	$450	$450	$450	$450	$450	$450	$400	$400	$400	$400
SEP Compensation	$275,000	$270,000	$265,000	$265,000	$260,000	$255,000	$250,000	$245,000	$245,000	$245,000	$230,000	$225,000	$220,000	$210,000	$205,000	$200,000	$200,000	$170,000	$170,000	$160,000	$160,000	$160,000	$150,000
Tax Credit ESOP Maximum Balance	$1,105,000	$1,080,000	$1,070,000	$1,070,000	$1,050,000	$1,035,000	$1,015,000	$985,000	$985,000	$985,000	$935,000	$915,000	$850,000	$850,000	$830,000	$810,000	$800,000	$780,000	$755,000	$735,000	$725,000	$710,000	$690,000
Amount for Lengthening of 5-Year ESOP Period	$220,000	$215,000	$210,000	$210,000	$210,000	$205,000	$200,000	$195,000	$195,000	$195,000	$185,000	$180,000	$175,000	$170,000	$165,000	$160,000	$160,000	$155,000	$150,000	$145,000	$145,000	$140,000	$135,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases	$130,000	$125,000	$125,000	$125,000	$125,000	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Excess Distribution Threshold	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$160,000	$155,000
Qualified Police and Firefighters’ DB Benefit Limit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$70,000	$66,000
Income Subject to Social Security Tax	$128,400	$127,200	$118,500	$118,500	$117,000	$113,700	$110,100	$106,800	$106,800	$106,800	$102,000	$97,500	$94,200	$90,000	$87,900	$87,000	$84,900	$80,400	$76,200	$72,600	$68,400	$65,400	$62,700
FICA Tax for employers	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%
FICA Tax for employees	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	5.65%	5.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%	7.65%
Social Security Tax for employers	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%
Social Security Tax for employees	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	4.2%	4.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%	6.2%
Medicare Tax for employees and employers	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%
SECA Tax for self-employed workers	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	13.3%	13.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%	15.3%
Social Security Tax for self-employed workers	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	10.4%	10.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%	12.4%
Medicare Tax for self-employed workers	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%

Footnotes:

1. 2018 limits reflect issuance of IRS Notice 2017-64, 2017-45 I.R.B. 486 (November 6, 2017) and the corresponding Social Security Administration News Release (October 13, 2017), as modified by Updated 2018 Taxable Maximum Amount Announced (November 27, 2017).

2. 2017 limits reflect issuance of IRS Notice 2016-62, 2016-46 I.R.B. 725 (November 14, 2016) and the corresponding Social Security Administration News Release (October 19, 2016).

3. 2016 limits reflect issuance of IRS Notice 2015-75, 2015-46 I.R.B. 668 (November 16, 2015) and the corresponding Social Security Administration News Release (October 15, 2015).

4. 2015 limits reflect issuance of IRS Notice 2014-70, 2014-48 I.R.B. 905 (November 24, 2014) and the corresponding Social Security Administration News Release (October 22, 2014).

5. 2014 limits reflect issuance of IRS Notice 2013-73, 2013-49 I.R.B. 598 (December 2, 2013) and the corresponding Social Security Administration News Release (October 30, 2013).

6. 2013 limits reflect issuance of IRS Notice 2012-67, 2012-50 I.R.B. 671 (December 10, 2012) and the corresponding Social Security Administration News Release (October 18, 2012).

7. 2012 limits reflect issuance of IRS Notice 2011-90, 2011-47 I.R.B. 791 (November 21, 2011) and the corresponding Social Security Administration News Release (October 20, 2011).

8. 2011 limits reflect issuance of IRS Notice 2010-78, 2010-49 I.R.B. 808 (December 6, 2010) and the corresponding Social Security Administration News Release (October 15, 2010).

9. 2010 limits reflect issuance of IRS Notice 2009-94, 2009-50 I.R.B. 848 (December 14, 2009) and the corresponding Social Security Administration News Release (October 15, 2009).

10. 2009 limits reflect issuance of IRS Notice 2008-102, 2008-45 I.R.B. 1107 (November 10, 2008) and the corresponding Social Security Administration News Release (October 16, 2008).

11. 2008 limits reflect issuance of IRS Notice 2007-87, 2007-45 I.R.B. 966 (November 5, 2007) and the corresponding Social Security Administration News Release (October 18, 2007).

12. 2007 limits reflect issuance of IRS Notice 2006-98, 2006-46 I.R.B. 906 (November 13, 2006) and the corresponding Social Security Administration News Release (October 18, 2006).

13. 2006 limits reflect issuance of IRS Notice 2005-75, 2005-45 I.R.B. 929 (November 7, 2005) and the corresponding Social Security Administration News Release (October 14, 2005).

14. 2005 limits reflect issuance of IRS Notice 2004-72, 2004-46 I.R.B. 840 (November 15, 2004) and the corresponding Social Security Administration News Release (October 19, 2004).

15. 2004 limits reflect issuance of IRS Notice 2003-73, 2003-45 I.R.B. 1017 (November 10, 2003) and the corresponding Social Security Administration News Release (October 16, 2003).

16. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.

17. Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.

2018 limits reflect issuance of IRS Notice 2017-64, 2017-45 I.R.B. 486 (November 6, 2017) and the corresponding Social Security Administration News Release (October 13, 2017), as modified by Updated 2018 Taxable Maximum Amount Announced (November 27, 2017).

2017 limits reflect issuance of IRS Notice 2016-62, 2016-46 I.R.B. 725 (November 14, 2016) and the corresponding Social Security Administration News Release (October 19, 2016).

2016 limits reflect issuance of IRS Notice 2015-75, 2015-46 I.R.B. 668 (November 16, 2015) and the corresponding Social Security Administration News Release (October 15, 2015).

2015 limits reflect issuance of IRS Notice 2014-70, 2014-48 I.R.B. 905 (November 24, 2014) and the corresponding Social Security Administration News Release (October 22, 2014).

2014 limits reflect issuance of IRS Notice 2013-73, 2013-49 I.R.B. 598 (December 2, 2013) and the corresponding Social Security Administration News Release (October 30, 2013).

2013 limits reflect issuance of IRS Notice 2012-67, 2012-50 I.R.B. 671 (December 10, 2012) and the corresponding Social Security Administration News Release (October 18, 2012).

2012 limits reflect issuance of IRS Notice 2011-90, 2011-47 I.R.B. 791 (November 21, 2011) and the corresponding Social Security Administration News Release (October 20, 2011).

2011 limits reflect issuance of IRS Notice 2010-78, 2010-49 I.R.B. 808 (December 6, 2010) and the corresponding Social Security Administration News Release (October 15, 2010).

2010 limits reflect issuance of IRS Notice 2009-94, 2009-50 I.R.B. 848 (December 14, 2009) and the corresponding Social Security Administration News Release (October 15, 2009).

2009 limits reflect issuance of IRS Notice 2008-102, 2008-45 I.R.B. 1107 (November 10, 2008) and the corresponding Social Security Administration News Release (October 16, 2008).

2008 limits reflect issuance of IRS Notice 2007-87, 2007-45 I.R.B. 966 (November 5, 2007) and the corresponding Social Security Administration News Release (October 18, 2007).

2007 limits reflect issuance of IRS Notice 2006-98, 2006-46 I.R.B. 906 (November 13, 2006) and the corresponding Social Security Administration News Release (October 18, 2006).

2006 limits reflect issuance of IRS Notice 2005-75, 2005-45 I.R.B. 929 (November 7, 2005) and the corresponding Social Security Administration News Release (October 14, 2005).

2005 limits reflect issuance of IRS Notice 2004-72, 2004-46 I.R.B. 840 (November 15, 2004) and the corresponding Social Security Administration News Release (October 19, 2004).

2004 limits reflect issuance of IRS Notice 2003-73, 2003-45 I.R.B. 1017 (November 10, 2003) and the corresponding Social Security Administration News Release (October 16, 2003).

This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.

Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.