It is fall, time for pumpkin carving, college football rivalries and of course, the IRS’s annual update to the retirement plan limits. After three years, the elective deferral limits for 401(k) and 403(b) plans will get a bump from $18,000 to $18,500. Consistent with last year, the annual compensation limit increased another $5,000 from $270,000 to $275,000, the defined contribution plan limit received another $1,000 bump, up to $55,000, and the defined benefit plan limit was again increased $5,000 to $220,000. Otherwise, there were no major changes made by the IRS to the annual limits as illustrated in our annual retirement plan limit chart. The Social Security Taxable Wage Base was increased again, but unlike last year (more than a 7% increase), this time there will only be a modest increase of $1,500 for 2018.
Click here to view the table.