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Vesting

Vesting refers to the percentage of a Participant's Account Balance or Accrued Benefit which is actually owned by the Participant and is non-forfeitable.

Current Year Limits

Each year the IRS posts changes it makes to the limitations it imposes on Qualified Pension Plans. Below is a summary of these limitations for 2018:

2018 Contribution Limits
         
    401(k) Only 401(k) with Profit Sharing Cash Balance

Age 50 or Older:

 

$24,500

$61,000

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Under 50 Years Old:  

$18,500

$55,000

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2018 Retirement Plan Limits
         
    2018 2017 2016
Defined Benefit Limit1
 

$220,000

$215,000

$210,000

Defined Contribution Limit1
 

$55,000

$54,000

$53,000

Elective Deferral Limit:3  

$18,500

$18,000

$18,000

Catch-Up Limit:3
 

$6,000

$6,000

$6,000

Maximum Compensation:2
 

$275,000

$270,000

$265,000

Highly Compensated Employee:4
 

$120,000

$120,000

$120,000

Top Heavy Key EE Definition4
 

$175,000

$175,000

$170,000

Social Security Taxable Wage Base:3
 

$128,400

$127,200

$118,500

 

1 Based on the year in which the Limitation Year ends.
2 Based on the year in which the Plan Year begins.
3 Applies to the calendar year.
4 Based on the year in which the preceding plan year begins.

  

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