2018 Limits

[Mike Preston]

Well, it is that time of year again.  The July CPI was published a few hours ago, so I imagine Tom is busy updating his spreadsheets.  To get the ball rolling:

It looks like we can lock in the 2018 limits as follows:

DB $220,000*
DC $55,000*
Comp $275,000*
401(k) $18,500
HCE $120,000
Key employee $175,000
Catch-ups $6,000
SIMPLE - $13,000

Those marked with an asterisk have a slight chance of not increasing as shown. For that to happen the August CPI would need to decrease 1.58 and then remain level at 243.206 for September or if August remains level at 244.786 then September would need to decrease all the way to 241.625 (a decrease of 3.16).  To put the 1.58 and 3.16 raw decreases into perspective, the CPI did, in fact, decrease from June to July by 0.169. If you are a fan of smoother rates a decrease of 1.05 from July to August and another decrease of 1.05 from August to September would also result in those three limits not increasing.

mike

[Tom Poje]

Mike- in something you asked me many moons ago, the CPI-W index (which is used to calc soc sec increases)

there is the following blurb:

Notes: Beginning with the CPI for January 2007, BLS publishes monthly CPIs to 3 decimal places. For years before 2007, BLS published CPIs to one decimal place. We show 3 decimal places for every year to provide a consistent presentation. The data for 2000 include revisions released by BLS on September 28, 2000. Data for May through August 2016 include revisions released by BLS on October 18, 2016

 

when they say to be consistent they show things to 3 places prior to 2007, all they have done is add 2 zeros.

[Mike Preston]

Thanks, Tom.

[Bill Presson]

It's like the first hint that Christmas is coming!

 

:)

[NJ Mike]

13 minutes ago, Bill Presson said:

It's like the first hint that Christmas is coming!

 

:)

More like the 10/15 deadline!