The IRS has announced the new retirement plan limits for 2017. Some limits increased from 2016 to 2017, and some stayed flat. Highlights include:
- The compensation limit used in determining benefits and contributions for both defined benefit and defined contribution plans is increased from $265,000 to $270,000.
- For defined benefit plans, the maximum annual benefit for a participant with at least ten years of participation and a normal retirement age between 62 and 65 increased from $210,000 to $215,000.
- For defined contribution plans (profit sharing and 401(k) plans), the maximum annual contribution for a participant was increased from $53,000 to $54,000. While this limit includes salary deferrals, it does not include catch up contributions.
- The limit on salary deferrals for 401(k) plans remains unchanged at $18,000, and the limit on catch up contributions for 401(k) plans, which are available to participants who attain age 50 by the end of 2017, also remains unchanged at $6,000.You can find a printable version of the complete list of the new 2017 annual limits by visiting the Retirement Plan Limits page of our website.
- As 2017 approaches, so does the deadline to set up a qualified plan for a 2016 calendar tax year. If you are interested in setting up a qualified plan, please contact us.
