2018 Retirement Plan Dollar Limits

Tip of the Day

By Stephanie Reagan

sreagan@sunlin.biz

The Internal Revenue Service announced in Notice 2017-64, the cost-of-living adjustments affecting dollar limits for retirement plan related items for 2018 as follows:

Defined Contribution Annual Additions (year in which the limitation year ends)   $53,000

401(k), 403(b) & 457 Deferral (Calendar year)  $18,500

Catch-Up Limit (Calendar year)  $6,000

Maximum Compensation (year in which the plan year begins)  $275,000

Highly Compensated Employee (preceding plan year begins)  $120,000

Defined Benefit (year in which the limitation year ends)  $220,000

Key Employee  $175,000

Social Security Taxable Wage Base  $128,700