IRS Annual 401(k) Contribution Limits

 Every Year, The IRS sets limits on the maximum amount you can contribute to your 401K and other retirement savings account. The limitations are changed based on the increase in the cost of living index. It’s good news for those who contribute to retirement savings plans. The following table illustrates various limits for 401k contributions for the last 3 years. 

Type of Limitation

2018

2017

2016

Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)

$18,500

$18,000

$18,000

457(b)(2) and 457(c)(1) Limits (not including catch-ups)

$18,500

$18,000

$18,000

Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans

$6,500

$6,000

$6,000

Defined Benefit Plans

$220,000

$215,000

$210,000

Defined Contribution Plans (annual additions limit)

$55,000

$54,000

$53,000

Annual Compensation Limit

$275,000

$270,000

$265,000

Highly Compensated Employee (“HCEs”)

$125,000

$120,000

$120,000