2018 Cost of Living Adjustments Released
The Internal Revenue Service (IRS) has released the 2018 cost-of-living adjustments, which affect the “dollar limits on benefits and contributions for qualified retirement plans”. The IRS also announced adjustments to other rates, including increases to the Elective Deferral Limit for 401(k) and 403(b) plans, as well as increased limits for Health Savings Accounts and Medical Flexible Spending Accounts.
Below please find a selection of these adjustments, as outlined by JDSupra.
|Elective Deferral Limit 401(k), 403(b), 457(b)||$18,000||$18,500|
|Defined Benefit Limit||$215,000||$220,000|
|Defined Contribution Limit||$54,000||$55,000|
|Annual Compensation Limit||$270,000||$275,000|
For a complete chart summarizing the 2018 limits, please click here.