IRS Announces Key Retirement Plan Limits for 2017

Volume 39 | Issue 125

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The IRS has issued a press release announcing the retirement plan limits for 2017. Other plan limits were released earlier this week and are summarized in our October 25, 2016 FYI Alert.

Retirement Plan Limits

The table below lists the key 2017 limits side by side with the limits in effect for 2016 with changes bolded:

  2017 2016
401(k)/403(b) elective deferral maximum $ 18,000 $ 18,000
§415 defined benefit dollar maximum $ 215,000 $ 210,000
§415 defined contribution annual addition maximum $ 54,000 $ 53,000
§457(b) nonqualified deferred compensation limit $ 18,000 $ 18,000
§401(a)(17) annual compensation limit $ 270,000 $ 265,000
§414(q) highly compensated employee limit $ 120,000 $ 120,000
§414(v) catch-up contribution limit $ 6,000 $ 6,000
§416(i) top-heavy officer limit $ 175,000 $ 170,000

 

The Section 401(a)(17) annual compensation limit for certain grandfathered participants in governmental plans in existence on July 1, 1993, rises to $400,000 for 2017 from $395,000.

In Closing

Our For Your Reference, a wallet-sized booklet showing retirement plan and other benefit limits, as well as various key Social Security and Medicare figures, will be available shortly from your consultant.