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IRS Announces 2017 Retirement Plan Dollar Limits

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The IRS recently announced cost-of-living adjustments for 2017 in Notice 2016-62. The key dollar limits, along with last year’s limits, are noted below.

Maximum Qualified Retirement Plan Dollar Limits

  2016 2017
Limit on Section 401(k) deferrals (Section 402(g)) $18,000 $18,000
Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) $6,000 $6,000
Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15)) $18,000 $18,000
Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A)) $210,000 $215,000
Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A)) $53,000 $54,000
Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17)) $265,000 $270,000
Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B)) $120,000 $120,000
Dollar amount for the definition of a key employee in a top-heavy plan (Section 416(i)(1)(A)(i)) $170,000 $175,000
Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii)) $1,070,000 $1,080,000
SIMPLE retirement account limitation (Section 408(p)(2)(E)) $12,500 $12,500
Social Security Taxable Wage Base $118,500 $127,500