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:
|402(g) Elective Deferrals||$18,000||$18,000|
|415 Annual Dollar||$53,000||$54,000|
|Highly Compensated Definition||$120,000||$120,000|
|Social Security Taxable Wage Base||$118,500||$127,200|
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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