In Notice 2017-64, the IRS released the 2018 cost of living adjustments applicable to defined benefit and defined contribution plans (highlights below). There is a slight increase in the annual limits applicable to defined benefit and defined contribution plans, as well as a slight increase in the annual compensation limit. Most of the other limits remain unchanged from 2017.
Defined benefit plan annual limit
Defined contribution plan annual limit
Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans)
Maximum deferral limit for 457 plans
>Age 50 catch-up contribution limit to 401(k), 403(b) or 457(b) plans
Maximum deferral limit for SIMPLE plans
>Age 50 catch-up contribution limit to SIMPLE plans
Minimum compensation considered in determining eligibility for a SEP (simplified employee pension)
Threshold for highly compensated employee (HCE)
Key employee compensation limit for top heavy plan purposes
Annual compensation limit
Also see IRS News Release, IRS Announces 2018 Pension Plan Limitations; 401(k) Contribution Limit Increases to $18,500 for 2018 (10/19/17), and IRS COLA table reflecting adjustments from 2016 to 2018.
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