On October 19, 2017, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items beginning January 1, 2018. See the chart below for further details.The highlights of limitations that changed from 2017 to 2018 include the following:
- The 401(a) annual compensation limit applicable to retirement plans increased from $270,000 to $275,000.
- The elective deferral limit increased from $18,000 to $18,500 and age 50 catch-up limit remains unchanged at $6,000.
- The 415(c) contribution limit applicable to defined contribution retirement plans increased from $54,000 to $55,000.
| 2018 | 2017 | |
| RETIREMENT PLANS | ||
| Annual Compensation Limits For Retirement Program Purposes | 275,000 | 270,000 |
| Elective Deferrals 403(b) – (for under age 50) | 18,500 | 18,000 |
| Catch-up Contributions For 403(b) Plan Participants age 50 and over | 6,000 | 6,000 |
| 457(b) Elective Deferrals | 18,500 | 18,000 |
| 457(b) Catch Up Contribution (Subject To Age And Other Restrictions) | 18,500 | 18,000 |
| Defined Contribution Limits On Maximum Combined Employee/Employer Contributions To Defined Contributions Plans | 55,000 | 54,000 |
| OTHER | ||
| Social Security Taxable Wage Base | 128,700 | 127,200 |
| Medicare Wage Base | No Limit | No Limit |
All figures in US dollars.
Source: www.irs.gov,