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
|
|||
Joint Return | 99,000 | 98,000 | 98,000 |
Single or Head of Household | 62,000 | 61,000 | 61,000 |
SEP |
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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 |
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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),
|
|||
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 |
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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.