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.
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