IRS ANNOUNCES 2018 PLAN CONTRIBUTION AND BENEFIT LIMITS

Human Resources, Midd Points
 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,

About Franklin Ford Daniel

Franklin Daniel, a Human Resources Professional at Middlebury College, enjoys the administration of the College's retirement plans and other benefits. He is a member of WorldatWork Society of Certified Professionals where he earned the Certified Benefits Professional designation, trained to comply with U.S. legal and regulatory requirements and integrate benefits programs with business strategy and design. Prior to joining Middlebury College, Franklin started his career with the Service Employees International Union holding various roles where his professional training started in the field of employee benefits. Before his human resources career, Franklin spent his days in the soccer field as a professional soccer player with the NJ Nationals and Club Atlético Banfield (Argentina). He also spent a year working as a barista in a seedy Parisian cafe in Greenwich Village, which he still considers his most challenging job to date. He holds a B.A. from the University of Rhode Island. Outside the office, he can be found walking his Newfoundland, coaching and playing soccer and his perennial dream to explore and photograph New York City's backstreets on his motorcycle. Follow @franklindaniel_ on Twitter.