The Internal Revenue Service has announced cost of living updates for tax year 2018.
Highlights of the notices include:
- The elective deferral or contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase to $18,500.
- The ยง415 limitation for defined contribution plans will increase to $55,000 for 2018.
- The maximum compensation limit will increase to $275,000.
- The dollar limitation concerning the definition of a key employee in a top-heavy plan will remain at $175,000.
- The dollar limitation used in the definition of a highly compensated employee will remain at $120,000.
- The catch-up contribution limit for those persons age 50 and over will remain at $6,000.
For additional information please go to: http://bit.ly/2gIHWt6