On February 6, 2018, the IRS announced that the Tax Cut and Jobs Act of 2017, as adopted in late December 2017, does not affect the tax year 2018 dollar limitations for retirement plans. The limits previously announced in IR 2017-177 and detailed in Notice 2017-64 remain in place as announced. For those administering retirement plans, contributions to qualified retirement plans, and IRAs can proceed with business as usual for this 2018 year.
Because the new law made changes to how the “cost of living adjustments” (or COLAs) are made for certain retirement plan provisions, additional analysis was necessary to identify any limits that would be changed after taking the applicable rounding rules into account. Again, no changes were made.