2018 Cost-of-Living Adjustments on IRS Benefit and Contribution Limits
Author: Catherine R. Reese (Indianapolis)
Published Date: October 20, 2017
On October 19, 2017, the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2018. The increase in the cost-of-living index met the statutory thresholds that triggered adjustments in some of the general pension limitations, including the limit on annual compensation and the individual limit on elective deferrals. However, the individual limit on catch-up contributions will not change for 2018. The following table highlights some of the key limits that will continue to affect tax-qualified pension plans, including those that will increase for 2018:
Ms. Reese concentrates her practice in employee benefits. She works with employers to design, establish and administer qualified retirement plans (defined contribution, defined benefit, cash balance), welfare benefit plans, and nonqualified deferred compensation plans. She assists clients in complying with statutory and regulatory requirements for reporting and disclosure, testing, and corrections for benefit plans, as well as assisting with IRS, DOL and PBGC filings, audits, and queries. Ms....