The Social Security Administration has revised its earlier pronouncement on the Taxable Wage Base for 2018. The Taxable Wage Base will now be $128,400, not $128,700. We have updated this blog post post accordingly (original publish date October 27, 2017.)
The Internal Revenue Service has announced the cost-of-living adjustments for the various qualified retirement plan limits. A few of the limits shown below remain unchanged from last year, but others have increased.
|
Qualified Plan Limit
|
Cost-of-Living Adjustments
|
|
401(k) and 403(b) elective deferral limit
|
2017-$18,000
2018-$18,500
|
|
$200,000 compensation limit
|
2017-$270,000
2018-$275,000
|
|
$160,000 defined benefit limit
|
2017-$215,000
2018-$220,000
|
|
$40,000 defined contribution limit
|
2017-$54,000
2018-$55,000
|
|
$80,000 definition of highly compensated employee
|
2017-$120,000
2018-$120,000
|
|
SIMPLE IRA deferral limit
|
2017-$12,500
2018-$12,500
|
|
Code Section 457 deferred compensation plan deferral limit
|
2017-$18,000
2018-$18,500
|
|
Code Section 414(v) catch-up contribution limit for employee deferrals
|
2017-$6,000
2018-$6,000
|
All of the above are plan year limits (i.e., for the plan year which begins in 2018), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.
In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $128,400 for 2018, which is an increase from the 2017 limit of $127,200.
