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The Wagner Law Group

The Wagner Law Group is a nationally recognized practice in the areas of ERISA and employee benefits, estate planning, employment, labor and human resources and investment management.

 

Established in 1996, The Wagner Law Group is dedicated to the highest standards of integrity, excellence and thought leadership and is considered to be amongst the nation's premier ERISA and employee benefits law firms. The firm has seven offices across the country, providing unparalleled legal advice to its clients, including large, small and nonprofit corporations as well as individuals and government entities worldwide. The Wagner Law Group's 29 attorneys, senior benefits consultant and four paralegals combine many years of experience in their fields of practice with a variety of backgrounds. Seven of the attorneys are AV-rated by Martindale-Hubbell and six are Fellows of the American College of Employee Benefits Counsel, an invitation-only organization of nationally recognized employee benefits lawyers.  Seven of the firm's attorneys have been named to the prestigious Super Lawyers list for 2017, which highlights outstanding lawyers based on a rigorous selection process

 

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Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Boston 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110

 

Washington, D.C.

Tel: (202) 969-2800

 

Fax: (202) 969-2568

 800 Connecticut Avenue, N.W.

Suite 810

Washington, D.C. 20006

 

Chicago

Tel: (847) 990-9034

Fax: (847) 557-1312

190 South LaSalle Street

Suite 2100

Chicago, IL 60603

 

  

Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

Tampa

Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 

  

San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104

  

St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
25 W. Moody Avenue
St. Louis, MO  63119 

 

 

 

www.wagnerlawgroup.com

 

 

 

October 19, 2017

 

ERISA & Employee Benefits

Law Alert

 

 

 

 

IRS ANNOUNCES 2018

RETIREMENT PLAN LIMITATIONS

 

 

 

 

The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2018, as detailed in Notice 2017-64.   

 

The following chart details the 2018 retirement plan dollar limitation cost-of-living adjustments:  

 

 

Limitation Description

 

2017

 

2018

 

Maximum annual benefit under a defined benefit plan under IRC Section 415(b)(1)(A)

 

 

 

$215,000

 

 

 

$220,000

 

Maximum annual contribution to an individual's defined contribution plan account under IRC Section 415(c)

 

 

 

$54,000

 

 

 

$55,000

 

Maximum amount of annual compensation that may be taken into account for determining benefits or contributions to retirement plans under IRC Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii)

 

 

 

 

 

 

 

$270,000

 

 

 

 

 

 

 

$275,000

 

Maximum Section 401(k), 403(b) and 457(b) elective deferrals

 

$18,000

 

$18,500

Dollar amount for determining maximum account balance in an employee stock ownership plan subject to a 5-year distribution period under IRC Section 409(o)(1)(C)(ii)

 

 

 

 

$1,080,000

 

 

 

 

 

$1,105,000

Dollar amount used for determining the lengthening of the 5-year distribution period in an employee stock ownership plan under IRC Section 409(o)(1)(C)(ii)

 


  
$215,000
 

 


 

 

$220,000

Limitation concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan under IRC Section 664(g)(7)

 

 

$45,000

 

 

$50,000

Wage Base For Social Security Tax

$127,200

$128,700*

*October 13, 2017 SSA announcement 

  
 

 

Notably, the following limits remain unadjusted for 2018:

 

·  The catch-up contribution limit for employees who are age 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan remains unchanged at $6,000.

·  The limit on annual contributions to an IRA remains unadjusted at $5,500 and the additional catch-up contribution limit for individuals age 50 and over remains $1,000.

·  The limitation used in the definition of "highly compensated employee" under IRC Section 414(q)(1)(B) remains unchanged at $120,000.

·  The minimum compensation amount under IRC Section 408(k)(2)(C) for simplified employee pensions (SEPs) remains $600.

·  The limitation under IRC Section 408(p)(2)(E) for salary deferral contributions to SIMPLE retirement accounts remains unadjusted at $12,500.

·  Amount of compensation to be a "key" employee under IRC Section 416(i)(1)(A)(i) remains unchanged at $175,000. 

 

 

 

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This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.