Broker Check

Annual Plan Limits

   2017 2018 2019 2020
Compensation $270,000$275,000$280,000$285,000
Limits on benefits and contributions:
 Defined contribution plans$54,000$55,000$56,000$57,000
 Defined benefit plans$215,000$220,000$225,000$230,000
 401(k), 403(b) and 457 plan elective deferrals$18,000$18,500$19,000$19,500
 SIMPLE plan elective deferrals$12,500$12,500$13,000$13,500
 IRA$5,500$5,500$6,000$6,000
Catch-up contributions:
 401(k), 403(b) and 457 plans$6,000$6,000$6,000$6,500
 SIMPLE plans$3,000$3,000$3,000$3,000
 IRA$1,000$1,000$1,000$1,000
“Highly Compensated” definition $120,000$120,000$125,000$130,000
“Key Employee” definition:
 Officer$175,000$175,000$180,000$185,000
 1% owner$150,000$150,000$150,000TBD
Social Security:
 Taxable wage base$127,200$128,400$132,900$137,700
 Social Security tax rate*6.20%6.20%6.20%6.20%
 Medicare tax rate1.45%1.45%1.45%1.45%
 Combined tax rate7.65%7.65%7.65%7.65%

* Beginning 2013, a medicare surtax of 0.9% applies to wages exceeding 250,000. There is a secondary surtax of 3.8% that may apply to unearned income for certain taxpayers as well.

Source: IRS.gov