Employee Benefits
IRS Announces 2017 Retirement Plan Dollar Limits
Nov 02, 2016
The IRS recently announced cost-of-living adjustments for 2017 in Notice 2016-62. The key dollar limits, along with last year’s limits, are noted below.
|
Maximum Qualified Retirement Plan Dollar Limits |
||
| 2016 | 2017 | |
| Limit on Section 401(k) deferrals (Section 402(g)) | $18,000 | $18,000 |
| Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) | $6,000 | $6,000 |
| Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15)) | $18,000 | $18,000 |
| Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A)) | $210,000 | $215,000 |
| Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A)) | $53,000 | $54,000 |
| Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17)) | $265,000 | $270,000 |
| Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B)) | $120,000 | $120,000 |
| Dollar amount for the definition of a key employee in a top-heavy plan (Section 416(i)(1)(A)(i)) | $170,000 | $175,000 |
| Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii)) | $1,070,000 | $1,080,000 |
| SIMPLE retirement account limitation (Section 408(p)(2)(E)) | $12,500 | $12,500 |
| Social Security Taxable Wage Base | $118,500 | $127,500 |
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