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The IRS annually reviews the limits placed on retirement plans and IRA contributions and the amount of benefits allowed under a pension plan. Figures are evaluated to determine if an adjustment is needed based on cost of living index statutory thresholds. For 2017, several items are unchanged from previous years, including the limitation on annual salary deferrals into a 401(k) and many other retirement plans. However, other items have been increased, including defined contribution limits into certain plans and income subject to social security. To help clients, prospects and others understand the changes, Selden Fox has provided a summary below.

2017

2016

2015

 

IRAs

IRA Contribution Limit $5,500 $5,500 $5,500
IRA Catch-Up
Contributions (50 or over)
1,000 1,000 1,000
 

IRA AGI Deduction
Phase-out Starting at

Joint Return 99,000 98,000 98,000
Single or Head of Household 62,000 61,000 61,000
 

SEP

SEP Minimum Compensation 600 600 600
SEP Maximum Contribution 54,000 53,000 53,000
SEP Maximum Compensation 270,000 265,000 265,000
 

SIMPLE Plans

SIMPLE Maximum Contributions 12,500 12,500 12,500
Catch-Up Contributions (50 or over) 3,000 3,000 3,000
 

401(k), 403(b),
Profit-Sharing Plans, etc.

Annual Compensation 270,000 265,000 265,000
Elective Deferrals 18,000 18,000 18,000
Catch-up Contributions (50 or over) 6,000 6,000 6,000
Defined Contribution Limits 54,000 53,000 53,000
ESOP Limits 1,080,000

215,000

1,070,000

210,000

1,070,000

210,000

 

Other

HCE Threshold 120,000 120,000 120,000
Deferred Benefit Limits 215,000 210,000 210,000
Key Employee 175,000 170,000 170,000
457 Elective Deferrals 18,000 18,000 18,000
Control Employee
(board member or officer)
105,000 105,000 105,000
Control Employee
(compensation-based)
215,000 215,000 215,000
Taxable Wage Base 127,200 118,500 118,500

Contact Us

Maximizing retirement savings is one way to ensure that your future income aligns with your important retirement goals. If you have questions about retirement plan contributions limits or plan audits, Selden Fox can help. For additional information, please call us at 630-954-1400, or click here to contact us.

Daniel DiMario

Dan DiMario, a tax manager, has built a significant level of trust with clients as a result of his client-centered approach. Dan earned his bachelor’s degree in accountancy from Rockford College and his law degree from Northern Illinois University.