Announcement 2018 Retirement Plan Limits
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||$55,00|
|Defined Benefit Dollar Limit||$220,000|
|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