IRS Releases Retirement Plan Limitations for 2018 Plan Year

Posted on October 23, 2017

2017 Cost-of-Living Adjustments (COLA) LimitsOn October 19, 2017, the Internal Revenue Service announced the 2018 Cost-of-Living Adjustments (COLA)1 to the retirement plan limits.

Below is a chart outlining the COLA limits that become effective January 1, 2018, along with the two prior tax years’ limits:

PLAN 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.


Share this Post:
Share on facebook
Share on twitter
Share on linkedin

Keep Reading

More Insights


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.