403(b) Curriculum Library


Compliance Alert: IRS Announces New Retirement Plan Limits for 2017

On October 27, 2016, the IRS announced the new 2017 retirement plan limits. However, applicable cost of living index did not increase sufficiently for many standard limits to increase for 2017. The elective deferral limit under 402(g), for example, remained unchanged at $18,000 ($24,000 if age 50 or older by 12/31/2017).

However, the Social Security Administration (SSA) announced on October 18th that the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $127,200 in 2017, up from the 2016 limit of $118,500. 

Highlights of the New Limits:

Limits 20162017
402(g) Elective Deferrals$18,000 $18,000
Catch-up Contributions$6,000 $6,000
401(a)(17) Compensation$265,000 $270,000
415 Annual Dollar$53,000 $54,000
Highly Compensated Definition$120,000 $120,000
Social Security Taxable Wage Base$118,500 $127,200

For a copy of the IRS announcement, click here.
 
For a copy of the SSA announcement, click here.

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

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