Not Much Drama in IRS Retirement Plan Limits for 2017
By David Pixley
It’s fall, time for the World Series, college football rivalries and of course, the IRS’s annual update to the retirement plan limits. Like last year, there were no dramatic changes made by the IRS in these limits, which are illustrated in our annual retirement plan limit chart. The most substantial change to the chart was the increase to the Social Security Taxable Wage Base, which was ramped up from 2016, to $127,200 for 2017. Also, the annual compensation limit increased from $265,000 to $270,000, the defined contribution plan limit received a $1,000 bump, up to $54,000, and the defined benefit plan limit was increased to $215,000, up from $210,000 for 2016.
| 2016 | 2017 | |
| ELECTIVE DEFERRAL ANNUAL LIMITS | ||
| 401(k), 403(b) and SEPs | $18,000 | $18,000 |
| 457 Plans | $18,000 | $18,000 |
| SIMPLE IRAs and 401(k)s | $12,500 | $12,500 |
| CATCH-UP CONTRIBUTIONS | ||
| 401(k), 403(b) and SEPs | $6,000 | $6,000 |
| SIMPLE IRAs and 401(k)s | $3,000 | $3,000 |
| MAXIMUM ANNUAL PLAN | $265,000 | $270,000 |
| 415 ANNUAL ADDITIONS | ||
| Defined Benefit Plan Limit | $210,000 | $215,000 |
| Defined Contribution Plan Limit | $53,000 | $54,000 |
| HIGHLY COMPENSATED EMPLOYEE | $120,000 | $120,000 |
| KEY EMPLOYEE | ||
| Officers | $170,000 | $175,000 |
| 1% Owner | $150,000 | $150,000 |
| SOCIAL SECURITY TAXABLE WAGE BASE | $118,500 | $127,200 |