The IRS recently announced its annual cost-of-living adjustments for certain retirement plan limits for 2018. Any adjustments, as shown below, are relatively small.
|Limit for 2017||Limit for 2018|
|Maximum annual dollar benefit for a defined benefit plan||$215,000||$220,000|
|Maximum dollar limit on additions to a defined contribution plan||$54,000||$55,000|
|Maximum amount of commpensation taken into account for a qualified retirement plan||$270,000||$275,000|
|Dollar limit for elective deferrals to a 401(k) plan||
($24,000 if age 50 or older)
($24,500 if age 50 or older)
|Dollar limit for contributions to a SIMPLE plan||$12,500||$12,500|
Note: The annual limit for contributions to traditional and Roth IRAs remains at $5,500 ($6,500 if age 50 or older) for 2018. Phaseout levels for IRA and Roth contributions are adjusted slightly.