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401(k) Deferral, Over-50 Catch-Up Contribution Limits Unchanged for 2017

  • Posted
  • Jan 14, 2017
What's New

401(k) Deferral, Over-50 Catch-Up Contribution Limits Unchanged for 2017

401(k) Deferral, Over-50 Catch-Up Contribution Limits Unchanged for 2017
The IRS has announced the changes to the dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2017 [IR-2016-141, 10-27-16; https://www.irs.gov/uac/newsroom/irs-announces-2017-pension-plan-limitations-401k-contribution-limit-remains-unchanged-at-18000-for-2017].
•  The limitation on the exclusion for elective deferrals under §402(g)(1) (e.g., §401(k) and §403(b) plans) remains unchanged at $18,000.
•  The limit on annual additions to defined contribution plans under §415(c)(1)(A) increases to $54,000 (from $53,000).
•  The limit on the annual benefit under a defined benefit plan contained in §415(b)(1)(A) increases to $215,000 (from $210,000).
•  The annual compensation limit under §401(a)(17), §404(l), §408(k)(3)(C), and §408(k)(6)(D)(ii) increases to $270,000 (from $265,000).
•  The compensation amount under §408(p)(2)(E) regarding elective deferrals to SIMPLE retirement accounts remains unchanged at $12,500.
•  The limitation under §457(e)(15) concerning elective deferrals to deferred compensation plans of state and local governments and tax-exempt organizations (§457(b) plans) remains unchanged at $18,000.
•  The limitation under §416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan increases to $175,000 (from $170,000).
•  The limitation under §414(v)(2)(B)(i) for catch-up contributions to §§401(k), 403(b), and 457(b) plans for individuals age 50 or over remains unchanged at $6,000; the limitation under §414(v)(2)(B)(ii) for catch-up contributions to an employer’s SIMPLE plan for individuals age 50 or over remains unchanged at $3,000.
•  The limitation used in the definition of “highly compensated employee” under §414(q)(1)(B) remains unchanged at $120,000.
•  The compensation amount under §408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $600.
•  The compensation amount under federal regulation §1.61-21(f)(5)(i), concerning the definition of “control employee” for fringe benefit purposes, remains unchanged at $105,000. The compensation amount under §1.61-21(f)(5)(iii) remains unchanged at $215,000.

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