The contribution limit was increase $500 to $18,500 per year. The catch-up contribution if you are over 50 years old stays the same at $6,000 per year. This also applies to other qualified retirement investment plans types such as most 457 plans, Thrift Savings Plan accounts along with 403(b) plans.
Defined Contribution (Cash Balance) Plans
Defined Contribution - $55,000 (1)
Cash Balance Maximum Lump Sum - $2,800,000 (2)
Cash Balance/Defined Benefit Annuity - $220,000 (3)
(1) Based on the year in which the limitation year ends.
(2) Payable at retirement age 62, actually amount is $2,832,611
(3) Based on the year in which the limitation year ends.
Other Notable Limits
Highly Compensated Employee (HCE) - $120,000 (no change)
Social Security Taxable Wage Base - $128,000 (a)
(a) Applies to the calendar year
Atlas is a 401(k) Retirement Specialist RIA firm that has a fiduciary responsibility towards its clients. We act as a 3(38) and 3(21) fiduciary towards the Plan Sponsor and the Participants. Customized Education Programs and Creative Company Match Plans.
What makes Atlas different?
Web Site – www.Atlas401kPlans.com – (888) 403-9400