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New IRS Indexed Limits for 2017

 

The IRS indexed dollar limits to qualified retirement plans for 2017 are provided in the table below. This update is provided for informational purposes and is not intended as legal advice.

 

Item IRC Reference 2016 Limit 2017 Limit
401(k) and 403(b) Employee Deferral Limit1 402(g)(1) $18,000 $18,000
457 Employee Deferral Limit 457(e)(15) $18,000 $18,000
Catch-up Contribution2 414(v)(2)(B)(i) $6,000 $6,000
Defined Contribution Dollar Limit 415(c)(1)(A) $53,000 $54,000
Defined Benefit Dollar Limit 415(b)(1)(A) $210,000 $215,000
Compensation Limit3 401(a)(17); 404(l) $265,000 $270,000
Highly Compensated Employee Income Limit4 414(q)(1)(B) $120,000 $120,000
Key Employee/Officer 416(i)(1)(A)(i) $170,000 $175,000
Social Security Taxable Wage Base   $118,500 $127,200

 

  1. Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.

  2. Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans.

  3. All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.

  4. For the 2018 plan year, an employee who earns more than $120,000 in 2017 is an HCE. For the 2017 plan year, an employee who earned more than $120,000 in 2016 is an HCE.    

*Information provided by The Standard

 

**For Plan Sponsor Use Only-Not for Use with Participants or the General Public.

 

This information is being presented to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA/DOL regulations.