New IRS Indexed Limits for 2018
The IRS indexed dollar limits to qualified retirement plans for 2018 are provided in the table below. This update is provided for informational purposes and is not intended as legal advice.
|Item||IRC Reference||2017 Limit||2018 Limit|
|401(k) and 403(b) Employee Deferral Limit1||402(g)(1)||$18,000||$18,500|
|457 Employee Deferral Limit||457(e)(15)||$18,000||$18,500|
|Defined Contribution Dollar Limit||415(c)(1)(A)||$54,000||$55,000|
|Defined Benefit Dollar Limit||415(b)(1)(A)||$215,000||$220,000|
|Compensation Limit3||401(a)(17); 404(l)||$270,000||$275,000|
|Highly Compensated Employee Income Limit4||414(q)(1)(B)||$120,000||$120,000|
|Social Security Taxable Wage Base||$127,200||$128,400|
Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.
Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans.
All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.
For the 2019 plan year, an employee who earns more than $120,000 in 2018 is an HCE. For the 2018 plan year, an employee who earned more than $120,000 in 2017 is an HCE.
**For Plan Sponsor Use Only-Not for Use with Participants or the General Public.
This information is being presented to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA/DOL regulations.