Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 19th, 2017
Compliance
IRS Announces 2018 Contribution/Benefits Limits
The Internal Revenue Service (IRS) has issued Notice 2017-64 announcing cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000. Effective January 1, 2018, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $215,000 to $220,000. For a participant who separated from service before January 1, 2018, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2017, by 1.0196. The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2018 from $54,000 to $55,000.Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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