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IRS Announces 2018 Pension Limits

The IRS has announced cost-of-living (COLA) adjustments to various pension limits that will apply in 2018. The maximum annual benefit payable under a defined benefit plan has increased to $220,000, and there was a modest increase of $500 in the elective deferral limit under a 401(k) plan or 403(b) plan for 2018. The key 2018 pension limits, as well as the Social Security taxable wage base, are noted in the chart below, along with prior years' limits.

Limit

2018

2017

2016

Maximum Annual Pension Benefit

$220,000

$215,000

$210,000

Maximum Contribution to a DC Plan

$55,000

$54,000

$53,000

Maximum Elective 401(k), 403(b) and 457 Deferrals

$18,500

$18,000

$18,000

Qualified Plan Compensation Limit

$275,000

$270,000

$265,000

Social Security Taxable Wage Base

$128,700

$127,200

$118,500

View Notice 2017-64 for additional 2018 limitation adjustments.

If you have any questions about these or other limits or about the impact on your plan, contact your Cheiron consultant.

Cheiron is an actuarial consulting firm that provides actuarial and consulting advice. However, we are neither attorneys nor accountants. Accordingly, we do not provide legal services or tax advice.

 
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