IRS Releases Retirement Plan Limitations for 2018 Plan Year
Below is a chart outlining the COLA limits that become effective January 1, 2018, along with the two prior tax years’ limits:
|Salary Deferral Limit for 401(k), 403(b), 457(b) Plans (Code §402(g)(1)) (generally, a participant’s calendar year limit)||$18,000||$18,000||$18,500|
|Catch-up Limit for 401(k), 403(b), 457(b) Plans (Code §414(v)) (available to participants age 50 or older by December 31)||$6,000||$6,000||$6,000|
|Maximum Annual Compensation for Retirement Plan Purposes (Code §401(a)(17))||$265,000||$270,000||$275,000|
|Maximum Defined Contribution Plan Annual Addition (Code §415(c)) (effective for limitation years ending in designated year)||$53,000||$54,000||$55,000|
|Social Security Taxable Wage Base||$118,500||$127,200||$128,4002|
|Highly Compensated Employee (HCE) Compensation (Code §414(q))||$120,000||$120,000||$120,000|
|Top-Heavy Key Employee Compensation (Code §416(i))||$170,000||$175,000||$175,000|
If you have any questions or wish to discuss the application of these limits to your retirement plan, please contact your ERISA Consultant at 417-889-4918 or 800-234-9584.
Disclosure: Pension Consultants, Inc. is registered with U.S. Securities and Exchange Commission as an investment adviser.
Let’s Get Started
Are you ready to see if you have a good plan? We’re ready to show you! Click the button below to discover your plan’s true performance.
With just some simple information about your plan, our team can see how your plan is performing in the three key areas. Then, we’ll set up a meeting with you and your team to review the results and talk about how we can help.