On October 27, 2016, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items beginning January 1, 2017. See the chart below for further details.
The highlights of limitations that changed from 2016 to 2017 include the following:
- The 401(a) 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
- The 415(c) contribution limit applicable to defined contribution retirement plans increased from $53,000 to $54,000.
| 2017 | 2016 | |
| RETIREMENT PLANS | ||
| Annual Compensation Limits For Retirement Program Purposes | 270,000 | 265,000 |
| Elective Deferrals 403(b) – (for under age 50) | 18,000 | 18,000 |
| Catch-up Contributions For 403(b) Plan Participants age 50 and over | 6,000 | 6,000 |
| 457(b) Elective Deferrals | 18,000 | 18,000 |
| 457(b) Catch Up Contribution (Subject To Age And Other Restrictions) | 18,000 | 18,000 |
| Defined Contribution Limits On Maximum Combined Employee/Employer Contributions To Defined Contributions Plans | 54,000 | 53,000 |
| OTHER | ||
| Social Security Taxable Wage Base | 127,200 | 118,500 |
| Medicare Wage Base | No Limit | No Limit |
All figures in US dollars.
Sources: www.irs.gov, www.tiaa.org