IRS Announces 2017 Plan Contribution and Benefit Limits

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.
  2017 2016
IRAs    
IRA Contribution Limit $5,500 $5,500
IRA Catch-Up Contributions 1,000 1,000
IRA AGI Deduction Phase-out Starting at
Joint Return 99,000 98,000
Single or Head of Household 62,000 61,000
SEP    
SEP Minimum Compensation 600 600
SEP Maximum Contribution 54,000 53,000
SEP Maximum Compensation 270,000 265,000
SIMPLE Plans    
SIMPLE Maximum Contributions 12,500 12,500
Catch-up Contributions 3,000 3,000
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation 270,000 265,000
Annual Compensation Grandfathered Governmental Plans 400,000 395,000
Elective Deferrals 18,000 18,000
Catch-up Contributions 6,000 6,000
Defined Contribution Limits 54,000 53,000
Other    
HCE Threshold 120,000 120,000
Defined Benefit Limits 215,000 210,000
Key Employee 175,000 170,000
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
Source: www.irs.gov
 
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