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The IRS recently announced cost-of-living adjustments for 2018 in Notice 2017-64 and related guidance. The key dollar limits for qualified retirement plans and health and welfare plans are noted below.
Qualified Retirement Plan Dollar Limits
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2017 |
2018 |
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Limit on Section 401(k) deferrals (Section 402(g)) |
$18,000 |
$18,500 |
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Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) |
$6,000 |
$6,000 |
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Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15)) |
$18,000 |
$18,500 |
|
Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A)) |
$215,000 |
$220,000 |
|
Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A)) |
$54,000 |
$55,000 |
|
Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17)) |
$270,000 |
$275,000 |
|
Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B)) |
$120,000 |
$120,000 |
|
Dollar amount for the definition of a key employee in a top-heavy plan (Section 416(i)(1)(A)(i)) |
$175,000 |
$175,000 |
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Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii)) |
$1,080,000 |
$1,105,000 |
|
SIMPLE retirement account limitation (Section 408(p)(2)(E)) |
$12,500 |
$12,500 |
|
Social Security Taxable Wage Base |
$127,200 |
$128,700 |
