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.
|Elective Deferrals [401(k), 403(b) & 457 plans]||$18,500||$18,000|
|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||$128,400||$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.