The Internal Revenue Service (“IRS”) announced on October 19, 2017, the following dollar limits applicable to tax-qualified plans for 2018:
• The limit on the maximum amount of elective contributions that a person may make to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan is increased from $18,000 to $18,500.
• The limit on “catch-up contributions” to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan for persons age 50 and older remains unchanged at $6,000.
• The dollar limit on the maximum permissible allocation under a defined contribution plan is increased from $54,000 to $55,000.
• The maximum annual benefit under a defined benefit plan is increased from $215,000 to $220,000.
• The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan will go from $270,000 to $275,000.
• The dollar amount used to identify “highly compensated employees” remains unchanged at $120,000.
