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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)
1,0001,0001,000
 

IRA AGI Deduction
Phase-out Starting at

Joint Return99,00098,00098,000
Single or Head of Household62,00061,00061,000
 

SEP

SEP Minimum Compensation600600600
SEP Maximum Contribution54,00053,00053,000
SEP Maximum Compensation270,000265,000265,000
 

SIMPLE Plans

SIMPLE Maximum Contributions12,50012,50012,500
Catch-Up Contributions (50 or over)3,0003,0003,000
 

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

Annual Compensation270,000265,000265,000
Elective Deferrals18,00018,00018,000
Catch-up Contributions (50 or over)6,0006,0006,000
Defined Contribution Limits54,00053,00053,000
ESOP Limits1,080,000

215,000

1,070,000

210,000

1,070,000

210,000

 

Other

HCE Threshold120,000120,000120,000
Deferred Benefit Limits215,000210,000210,000
Key Employee175,000170,000170,000
457 Elective Deferrals18,00018,00018,000
Control Employee
(board member or officer)
105,000105,000105,000
Control Employee
(compensation-based)
215,000215,000215,000
Taxable Wage Base127,200118,500118,500

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.