The IRS published cost-of-living adjustments to various qualified retirement plans and related amounts for 2018. Many of the limits pertaining to pension and other retirement plans have changed. For instance, the (1) benefit limit for defined benefit plans has increased from $215,000 to $220,000; (2) defined contribution plan limit has increased from $54,000 to $55,000; and (3) elective deferral limit for employees participating in 401(k), 403(b), and most 457 plans has increased from $18,000 to $18,500. However, some limits remain the same. For example, the (1) compensation limit for defining a highly compensated employee remains at $120,000; (2) limit on annual contributions to an IRA remains at $5,500; and (3) limit on elective deferrals to SIMPLE accounts remains at $12,500.
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