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Retirement Plan Contribution Limits for 2018: Overall and Deferral limits Increased

Authored by: Jerry Rich
Date: November 9, 2017
Overall Limit: $55,000 or 100% of includible compensation. Salary Deferral Limit: $18,500.

There are two types of contribution limits to the FCMM Retirement Plan: the overall limit and the salary deferral limit. The IRS has announced increases for both limits for 2018:

The overall limit includes both employer and salary deferral contributions to all 403(b) and 401(k) plans. The 2018 year overall contribution limit is the lesser of $55,000 or 100% of includible compensation which excludes a housing allowance. This overall limit is also known as the 415(c) limit.

The salary deferral limit covers all pre-tax and Roth deferrals to all 403(b) and 401(k) plans. The 2018 annual limit is $18,500. This salary deferral limit is also known as the 402(g) limit.

A participant over age 50 can make a catch-up deferral contribution, in addition to these limits, of up to $6,000.