The IRS recently announced the cost-of-living adjustments applicable to certain limitations for retirement plans in 2018.
The 2018 calendar year limits are as follows:
- 401(k) Deferrals (1,2) $18,500
- 401(k) Catch-Up Contributions (1,2) $6,000
- Defined Contribution Limit $55,000
- Defined Benefit Dollar Limit $220,000
- Compensation Limitation $275,000
- Highly Compensated Employee (3) $120,000
- Key Employee Officer $175,000
- Social Security Taxable Wage Base $128,400
- This is a $500 increase in the basic limit.
- An employee who is at least age 50 in 2018 may elect to defer $24,500 (the $18,500 basic limit plus the $6,000 catch-up amount).
- An employee with gross wages over $120,000 in the 2018 plan year will be treated as highly compensated in the next plan year – 2019.
Dissinger Associates Plan Administration & Design, Inc. is an employee-owned firm of retirement plan consultants, administrators, and actuaries. We specialize in the design, installation, and administration of tax-qualified retirement plans. Our experienced staff is dedicated to providing high-quality service. 2018 will be our 37th year servicing the business community