Compliance Alert: IRS Announces New Retirement Plan Limits for 2018
On October 19, 2017, the IRS announced the new 2018 retirement plan limits. The good news is that the applicable cost of living index did increase sufficiently for many standard limits to increase for 2018. The elective deferral limit under 402(g), for example, increased by $500 to $18,500 ($24,500 if age 50 or older by 12/31/2018).
The Social Security Administration (SSA) also announced on October 13th that the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $128,400* in 2018, up from the 2017 limit of $127,200.
*Editor's note: The 2018 Social Security Taxable Wage Base limit was updated as of 11/28/2017 to reflect the revised amount. To read more, click here.
Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.
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