What is the Section 401(a)(17) limit on includable compensation for 2018?

The Section 401(a)(17) limit refers to the maximum amount of compensation that can be considered when determining contributions to qualified retirement plans, such as 401(k) plans, under the Internal Revenue Code. For the year 2018, the limit was established at $275,000.

This figure is adjusted periodically, reflecting annual changes that take into account factors like general wage increases and inflation. It is essential for both employers and employees to be aware of this limit, as it impacts how much can be contributed to certain retirement plans based on an employee's compensation.

Understanding this limit also helps employers to structure their plans in compliance with IRS regulations while maximizing benefits for their employees. Thus, for 2018, the correct limit on includable compensation under Section 401(a)(17) is indeed $275,000.