On October 27, 2016, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. See the chart below for further details.
The highlights of limitations that changed from 2016 to 2017 include the following:
- The 415(c) contribution limit applicable to defined contribution retirement plans increased from $53,000 to $54,000.
- The 401(a)(17) annual compensation limit applicable to retirement plans increased from $265,000 to $270,000.
- The elective deferral limit and age 50 catch-up limit remained the same at $18,000 and $6,000, respectively.
|IRA Contribution Limit||$5,500||$5,500|
|IRA Catch-Up Contributions||1,000||1,000|
|IRA AGI Deduction Phase-out Starting at|
|Single or Head of Household||62,000||61,000|
|SEP Minimum Compensation||600||600|
|SEP Maximum Contribution||54,000||53,000|
|SEP Maximum Compensation||270,000||265,000|
|SIMPLE Maximum Contributions||12,500||12,500|
|401(k), 403(b), Profit-Sharing Plans, etc.|
|Annual Compensation Grandfathered Governmental Plans||400,000||395,000|
|Defined Contribution Limits||54,000||53,000|
|Defined Benefit Limits||215,000||210,000|
|457 Elective Deferrals||18,000||18,000|
|Control Employee (board member or officer)||105,000||105,000|
|Control Employee (compensation-based)||215,000||215,000|
|Taxable Wage Base||127,200||118,500|
All figures in US dollars