Coolidge Wall Co., L.P.A.
Phone : 937-608-9464 | Toll Free : 877-422-0702

IRS Announces 2018 Pension Plan Limitations

On October 19, 2017 the IRS announced cost-of-living adjustments for 2018 retirement plan contributions. For 2018, the amounts that individuals will be able to contribute to retirement plans will increase from $18,000 to $18,500. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $6,000. This chart summarizes the limitations for 2018:

Contribution Limits

  2018

  2017

Elective Deferral Limit - 401(k), 403(b) and 457(b) Plans

$18,500

$18,000

Catch-Up Contribution Limit

$  6,000

$  6,000

Elective Deferral Limit - SIMPLE Retirement Plan

$12,500

$12,500

Catch-Up Contribution Limit - SIMPLE Retirement Plan

$  3,000

$  3,000

Contribution Limit - IRA

$  5,500

$  5,500

Catch-Up Contribution Limit - IRA

$  1,000

$  1,000

Benefits and Compensation

Defined Contribution Plan Annual Addition Limit

$  55,000

$  54,000

Defined Benefit Plan Annual Benefit Limit

$220,000

$215,000

Annual Compensation Limit

$275,000

$270,000

Highly Compensated Employee Limit

$120,000

$120,000

Key Employee Compensation Limit

$175,000

$175,000

The Social Security Administration earlier announced that the Social Security Wage Base for 2018 will increase to $128,700.

If you have questions about the new pension plan limitations, please contact Brent Gambill (937-449-5539) or Edie Crump (937-449-5530).

No Comments

Leave a comment
Comment Information