IRS Announces 2017 Plan Contribution and Benefit Limits

HR doorOn 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