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Publications | February 12, 2018
2 minute read

Key Benefit Plan Limits for 2018

The IRS recently released its 2018 employee benefits limitations for retirement plans. The following chart lists common limitations relevant for many employers.

401(k), 403(b), 457(b), Pension, etc.
Annual Compensation$275,000$270,000$265,000
Elective Deferrals18,50018,00018,000
Catch-up Contributions6,0006,0006,000
Defined Contribution Limits55,00054,00053,000
Defined Benefit Limits220,000215,000210,000
HCE Threshold120,000120,000120,000
Key Employee175,000175,000175,000
ESOP Limits1,105,000
IRA Contribution Limit$5,500$5,500$5,500
IRA Catch-Up Contributions1,0001,0001,000
IRA AGI Deduction Phase-out Starting at
Joint Return$101,000$99,000$98,000
Single or Head of Household63,00062,00061,000
SEP Minimum Compensation$600$600$600
SEP Maximum Contribution55,00054,00053,000
Sep Maximum Compensation275,000270,000265,000
SIMPLE Maximum Contribution$12,500$12,500$12,500
Catch-Up Contribution3,0003,0003,000
457 Elective Deferrals$18,500$18,000$18,000
Control Employee (board member or officer)110,000105,000105,000
Control Employee (compensation-based)220,000215,000215,000
Taxable Wage Base128,400127,200265,000
Health Plans
HSA Out-of-Pocket Maximums (Self-Only)$6,500$6,500$6,500
HSA Out-of-Pocket Maximums (Other than Self-Only)13,30013,10013,100
HSA Minimum Deductible (Self-Only)1,3501,3001,300
HSA Minimum Deductible (Other than Self-Only)2,7002,6002,600
HSA Maximum Contribution (Self-Only)3,4503,4003,350
HSA Maximum Contribution (Other than Self-Only)6,9006,7506,750
HSA Catch-up Contribution1,0001,0001,000
ACA Out-of-Pocket Maximums (Self-Only)*±7,3507,1506,850
ACA Out-of-Pocket Maximums (Other than Self-Only)*±14,70014,30013,700
Health FSA Salary Reduction Cap#2,6502,6002,550
Employer Shared Responsibility - 4980H(a) Failure to Offer Coverage±€2,3202,2602,160
Employer Shared Responsibility - 4980H(b) Failure to Offer Affordable, Minimum Value Coverage±€3,4803,3903,240

*These limits do not apply to grandfathered or retiree-only plans.

±These amounts are indexed to increase based on the average per capita premium for U.S. health insurance coverage from the prior calendar year. The Out-of-Pocket maximum limit for self-only coverage applies to all individuals (regardless of whether the individual is in self-only or another level of coverage). For example, a family plan with a $14,700 family Out-of-Pocket limit cannot have cost sharing exceeding $7,350 for an individual enrollee in the plan.

#These fees apply on a plan year basis and are indexed for CPI-U.

€These fees apply on a calendar year basis and are assessed monthly at 1/12 of the annual amount.

In addition, the Patient Protection and Affordable Care Act imposes a fee to help fund the Patient Centered Outcomes Research Institute (PCORI). For plan years ending between Oct. 1, 2016, and Sept. 30, 2017, the PCORI fee is $2.26. For plan years ending on or after Oct. 1, 2017, and on or before Sept. 30, 2018, the PCORI fee is $2.39.