The IRS recently announced the 2018 cost-of-living adjustment (COLA) increases to contribution limits for IRAs and qualified plans.
Each year, the IRS adjusts these numbers for cost-of-living increases in $500 increments when statutory thresholds are met. Although there were no changes to traditional and Roth IRAs, we did see some increases for defined contribution limits (both elective salary deferral and employer contributions).
Below is a chart that compares the 2017 limits to the 2018 limits.
|Traditional and Roth IRA Contribution Limits||$5,500||$5,500||No Change|
|Traditional and Roth IRA Catch-Up Contributions||$1,000||$1,000||No Change|
|SIMPLE IRA Maximum Contributions||$12,500
|SIMPLE IRA Catch-Up Contributions
|SEP-IRA Contribution Limit||$54,000||$55,000||$1,000|
|401(k), 403(b), and 457(b) Maximum Elective Deferrals||$18,000||$18,500||$500|
|401(k), 403(b), and 457(b) Catch-Up Contributions||$6,000||$6,000||No Change|
|IRC 415 Defined Contribution Limits
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