2018 COLA Dollar Limitations on Benefits and Contributions

The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code §415 requires the limits, when necessary, to be adjusted annually for cost-of-living increases. The chart below shows how dollar limitations for retirement plans and other items will change from 2017 to 2018.

LIMITATION 2018 2017
401(a)(17)/ 404(l) Annual Compensation $275,000 $270,000
402(g)(1) Elective Deferrals $18,500 $18,000
409(o)(1)(C) ESOP Limits $1,105,000
$220,000
$1,080,000
$215,000
414(q)(1)(B) HCE threshold $120,000 $120,000
414(v)(2)(B)(i) Catch-up Contribution* $6,000 $6,000
415(c)(1)(A) DC Limits $55,000 $54,000
457(e)(15) Deferral Limit $18,500 $18,000
OASDI Taxable Wage Base $128,700 $127,200

*$6,000 additional catch-up for participants age 50 and over by December 31, 2018, if plan allows.

For more information on this or on CapSouth’s retirement plan consulting services, please contact us toll free at (800) 929-1001.

 

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