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 |
|
$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.