IRS Cost of Living Adjustments for 2018

Plan limits are adjusted annually for cost-of-living increases under RC Section 415. Each year these adjustments are calculated and released by the Internal Revenue Service (IRS). Last week, the IRS announced the tax year 2018 annual inflation adjustments. A few notable changes for 2018 include Pension Plan Limitations and the contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500.

A chart of the 2018 limits is provided below: