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 compensation taken into account for a qualified retirement plan            $270,000                                $275,000

Dollar limit for elective deferrals to a 401(k) plan                                                                        $18,000                                 $18,500

($24,000 if age                       ($24,500 if age

50 or older)                            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.