IRS Publishes New Pension Plan Limitations for 2018

The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2018.

In general, many of the pension plan limitations will change for 2018 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.

Contribution/Benefit Limits 2018 2017
Elective Deferrals [401(k), 403(b) & 457 plans] $18,500 $18,000
Catch-Up Contribution $6,000 $6,000
Simple Employee Deferral $12,500 $12,500
Simple Catch-Up Contribution $3,000 $3,000
Annual Contribution Limit $55,000 $54,000
Annual Compensation Limit $275,000 $270,000
Highly Compensated Threshold $120,000 $120,000
Income Subject to Social Security $128,700 $127,200
Key Employee Compensation $175,000 $175,000
DB Plan Annual Benefit Limit $220,000 $215,000

As published by the Internal Revenue Service.

For full details on the pension plan limitations for 2018 click here.

For more information contact our team.

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