IRS announces new retirement plan limitations for 2017

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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