10/19/2017

2018 Cost Of Living Adjustments Announced

The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Today, the Internal Revenue Service announced the 2018 cost-of-living adjustments affecting dollar limitations for qualified retirement plans. Some limits remain unchanged, and several have been increased as shown below.

401(k), 403(b), Profit-Sharing Plans, etc.
2018 2017 2016
Annual Compensation 275,000 270,000 265,000
Elective Deferrals 18,500 18,000 18,000
Catch-up Contributions 6,000 6,000 6,000
Defined Contribution Limit 55,000 54,000 53,000
ESOP Distribution Limits 1,105,000
220,000
1,080,000
215,000
1,070,000
210,000
Defined Benefit Limit 220,000 215,000 210,000
HCE Threshold 120,000 120,000 120,000
Key Employee 175,000 175,000 170,000
457 Elective Deferrals 18,500 18,000 18,000
Taxable Wage Base 128,400* 127,200 118,500

* Revised per November 27, 2017 press release from the Social Security Administration


For a historical chart of the applicable dollar limitations since 1985, click here.

For questions about the qualified plan limitations or any other benefits question, contact a member of Holland & Hart’s Benefits Law Group.

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