The IRS has announced cost of living adjustments (COLA) applicable to qualified plans for 2018.
The limit on elective deferrals to 401(k), 403(b) and 457(b) plans will increase from $18,000 to $18,500. Catch-up contributions will remain limited to $6,000.
The limitation on contributions to participants (including elective deferrals but excluding catch-up contributions) increases from $54,000 to $55,000. The limit on the annual retirement benefit under a defined benefit plan is raised from $215,000 to $220,000.
The annual compensation that can be considered for retirement plan purposes increases from $270,000 to $275,000. The threshold for determining a highly compensated employee remains at $120,000 paid in the prior year. Click here for our updated summary of the retirement plan limits.
For questions or more information, please contact Richard Green at rgreen@windes.com or 844.4WINDES.
Learn more about our Employee Benefit Services practice