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.