IRS Publishes New Pension Plan Limitations for 2017

The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2017.

In general, many of the pension plan limitations will change for 2017 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, the Elective Deferral and Catch-Up Contribution limits remain unchanged for 2017.

Contribution/Benefit Limits 2017 2016
Elective Deferrals (401k & 403b plans) $18,000 $18,000
Catch-Up Contributions $6,000 $6,000
Annual Contribution Limit $54,000 $53,000
Annual Compensation Limit $270,000 $265,000
457(b) Deferral Limit $18,000 $18,000
Highly Compensated Threshold $120,000 $120,000
Income Subject to Social Security $127,200 $118,500
Top-Heavy Plan Key Employee Comp $175,000 $170,000
DB Plan Annual Benefit Limit $215,000 $210,000

As published by the Internal Revenue Service.

For full details on the pension plan limitations for 2017 click here.

For more information contact our team.

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