IRS Announces Retirement Plan Limits for 2017

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.
This entry was posted in Retirement Planning. Bookmark the permalink.

Comments are closed.