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.
|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|
|Social Security Taxable Wage Base||127,200||118,500|
|Medicare Wage Base||No Limit||No Limit|
All figures in US dollars.