IRS announces new retirement plan limitations for 2017

On Oct. 27, 2016, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2017 tax year. The limits are based upon the Social Security cost-of-living increases. Many of the limits remain the same and a few have changed.
 

  2016  2017
401(k),403(b) and 457(b) deferral limits     $18,000 $18,000 
401(k) and 403(b) catch-up deferral limits     $6,000 $6,000
Annual limitation on compensation  $265,000 $270,000
Defined contribution limitation     $53,000 $54,000
Defined benefit limitation  $210,000 $215,000
Highly compensated employee compensation threshold       $120,000 $120,000
Key employee compensation - officer threshold  $170,000 $175,000
SIMPLE deduction $12,500 $12,500
SIMPLE catch-up contribution  $3,000 $3,000
IRA contribution limit   $5,500 $5,500
IRA catch-up contribution limit  $1,000 $1,000
Social Security wage base  $118,500 $127,000

For more information or if you have questions, please contact one of the attorneys listed below.

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