Christine Hradsky No Comments

2018 COST-OF-LIVING ADJUSTMENTS FOR QUALIFIED RETIREMENT PLANS

The Internal Revenue Service has announced the cost-of-living adjustment (COLA) for 2018. The dollar limitations for pension plans and selected other items are displayed in the associated graph. Certain annual compensation amounts were increased, including the limit for elective deferrals, which have not been updated since 2015. The Social Security Administration separately announced an increase to the taxable wage base.

 

Code Section 2018 2017 2016 2015 2014
401(a)(17)/404(l) Annual Compensation $275,000 $270,000 $265,000 $265,000 $260,000
402(g)(1) Elective Deferrals 18,500 18,000 18,000 18,000 17,500
408(k)(2)(C) SEP Minimum Compensation 600 600 600 600 550
408(k)(3)(C) SEP Maximum Compensation 275,000 270,000 265,000 265,000 260,000
408(p)(2)(E) SIMPLE Maximum Contributions 12,500 12,500 12,500 12,500 12,000
409(o)(1)(C) ESOP Limits 1,105,000

220,000

1,080,000

215,000

1,070,000

210,000

1,070,000

210,000

1,050,000

210,000

414(q)(1)(B) HCE Threshold 120,000 120,000 120,000 120,000 115,000
414(v)(2)(B)(i) Catch-up Contributions 6,000 6,000 6,000 6,000 5,500
414(v)(2)(B)(ii) Catch-up Contributions 3,000 3,000 3,000 3,000 2,500
415(b)(1)(A) DB Limits 220,000 215,000 210,000 210,000 210,000
415(c)(1)(A) DC Limits 55,000 54,000 53,000 53,000 52,000
416(i)(1)(A)(i) Key Employee 175,000 175,000 170,000 170,000 170,000
457(e)(15) Deferral Limits 18,500 18,000 18,000 18,000 17,500
1.61-21(f)(5)(i) Control Employee 110,000 105,000 105,000 105,000 105,000
1.61-21(f)(5)(iii) Control Employee 220,000 215,000 215,000 215,000 210,000
219(b)(5)(A) IRA Contribution Limit 5,500 5,500 5,500 5,500 5,500
219(b)(5)(B) IRA Catch-Up Contributions 1,000 1,000 1,000 1,000 1,000
Taxable Wage Base for Social Security 128,700 127,200 118,500 118,500 117,000