[9365]
October 24, 1997
TO: PENSION MEMBERS No. 48-97
PENSION OPERATIONS ADVISORY COMMITTEE No. 41-97
RE: IRS ANNOUNCES 1998 PENSION PLAN LIMITATIONS
______________________________________________________________________________
The Internal Revenue Service has announced cost-of-living adjustments to the dollar limits
applicable to retirement plans in 1998. Significant adjustments include the following:
1. The section 402(g) limit applicable to elective deferrals into 401(k) and other similar vehicles is
increased from $9,500 to $10,000.
2. The limitation on deferrals to section 457 plans of state and local governments and tax-exempt
organizations is increased from $7,500 to $8,000.
3. The limitation on the annual benefit under a defined benefit plan under section 415(b) is
increased from $125,000 to $130,000.
Other limitations with annual cost-of-living adjustment mechanisms, including the $30,000
limitation for defined contributions plans under section 415(c) and the $80,000 limitation used for the
section 414(q) definition of "highly compensated employee" remain unchanged for 1998.
Russell G. Galer
Associate Counsel - Pension
Attachment (in .pdf format)