Content area

Abstract

Many inflation-sensitive retirement plan contribution benefit limits will rise in 2018, after remaining flat for several years, the IRS announced. However, some limitation amounts will not change because of rounding computations. The 2018 cost of living adjustments (COLA) affect a wide range of retirement savings vehicles, including defined contribution plans, defined benefit plans, employee stock ownership plans, and individual retirement arrangements. Code Sec. 415 provides both dollar limitations on benefits and contributions under qualified retirement plans, along with a requirement that the IRS annually adjust these limits to reflect increases in the cost of living. With the release of the yearly adjustment, plan sponsors are encouraged to update payroll and plan administration systems to reflect new COLA limits. The 2018 adjustments provided by the IRS cover over 25 categories.

Details

Title
IRS Announces 2018 COLA Limits For 401(k)/Other Retirement Plans; Many Amounts Rise
Author
Anonymous
Pages
1-2
Publication year
2017
Publication date
Oct 26, 2017
Publisher
CCH Incorporated: Federal and State Tax
ISSN
01623486
Source type
Trade Journal
Language of publication
English
ProQuest document ID
1961322995
Copyright
Copyright CCH Incorporated: Federal and State Tax Oct 26, 2017