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IRS Releases Retirement Plan Limitations for 2017 Plan Year

Last Updated: October 28, 2016

2017 COLA limitsOn October 27, 2016, the Internal Revenue Service announced the 2017 Cost-of-Living Adjustments (COLA)[1] to the retirement plan limits. Below is a chart outlining the COLA limits that become effective January 1, 2017, along with the two prior tax years’ limits.  
PLAN LIMITS                                  2015 2016 2017
Salary Deferral Limit for 401(k), 403(b), 457(b) Plans (Code §402(g)(1)) (generally, a participant’s calendar year limit) $18,000 $18,000 $18,000
Catch-up Limit for 401(k), 403(b), 457(b) Plans (Code §414(v)) (available to participants age 50 or older by December 31) $6,000 $6,000 $6,000
Maximum Annual Compensation for Retirement Plan Purposes (Code §401(a)(17)) $265,000 $265,000 $270,000
Maximum Defined Contribution Plan Annual Addition (Code §415(c)) (effective for limitation years ending in designated year) $53,000 $53,000 $54,000
Social Security Taxable Wage Base $118,500 $118,500 $127,200[2]
Highly Compensated Employee (HCE) Compensation (Code §414(q)) $120,000 $120,000 $120,000
Top-Heavy Key Employee Compensation (Code §416(i)) $170,000 $170,000 $175,000
If you have any questions or wish to discuss the application of these limits to your retirement plan, please contact your ERISA Consultant at 417.889.4918 or 800.234-9584.
[1] IR-2016-62, Oct. 27, 2016.
[2] https://www.ssa.gov/oact/cola/cbb.html
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Pension Consultants, Inc.