New Limits for Retirement Plans

LIMIT ON

REGULATION IMPACTED

OLD LAW

NEW LAW

Exclusion for elective deferrals

 §402(g)(1) (e.g., §401(k) and §403(b) 

$18,500

$19,000

Annual additions to defined contribution plans

§415(c)(1)(A)

$55,000

$56,000

Annual benefit under a defined benefit plan

§415(b)(1)(A)

$220,000

$225,000 

Annual compensation

§401(a)(17), §404(l), §408(k)(3)(C), and §408(k)(6)(D)(ii) 

$275,000

$280,000

Compensation regarding elective deferrals to SIMPLE retirement accounts

§408(p)(2)(E)

$12,500

$13,000

Elective deferrals to deferred compensation plans of state and local governments and tax-exempt organizations 

§457(e)(15)

$18,500

$19,000

Concerning the definition of “key employee” in a top-heavy plan

§416(i)(1)(A)(i)

$175,000

$180,000

Catch-up contributions to §§401(k), 403(b), and 457(b) plans for individuals age 50 or over

§414(v)(2)(B)(i)

Unchanged

Unchanged

Catch-up contributions to an employer’s SIMPLE plan for individuals age 50 or over

§414(v)(2)(B)(ii)

Unchanged

Unchanged

The definition of “highly compensated employee”

§414(q)(1)(B) 

$120,000

$125,000

Compensation amount regarding simplified employee pensions (SEPs) 

§408(k)(2)(C)

Unchanged

Unchanged

Compensation amount concerning the definition of “control employee” for fringe benefit valuation purposes

§1.61-21(f)(5)(i)

Unchanged

Unchanged

Compensation amount concerning the definition of “control employee” for fringe benefit valuation purposes

§1.61-21(f)(5)(iii)

$220,000

$225,000 

Annual contributions to an Individual Retirement Arrangement

$5,500

$6,000

Additional IRA catch-up contribution for individuals aged 50 and over

Unchanged

Unchanged