2018 Retirement Plan Limits
At the end of 2017, the Internal Revenue Service announced the 2018 limits on benefits and compensation. Not much changed from 2017, but there were some increases to note. The Annual Additions limit was raised from $54,000 in 2017 to $55,000. The maximum amount of compensation that can be considered for retirement plan purposes was raised from $270,000 in 2017 to $275,000. Finally, the deferral limit for employee pre-tax and after-tax Roth contributions increased from $18,000 in 2017 to $18,500 in 2018. The $6,000 catch-up limit for individuals age 50 or older did not change. The deferral limit for age 50 or older is now $24,500.
For more details on how this might affect your plan or participants, please contact us!