Understanding Employee Benefits

IRS Annual Limits on Qualified Plans for 2017

By | October 28, 2016

IRS Annual Limits on Qualified Plans for 2017

On October 27, 2016, the Internal Revenue Service released the 2017 cost of living adjustments affecting dollar limits on benefits and contributions under qualified retirement plans and health savings accounts. Changes from 2016 were minimal. Notice 2016-62 is available here.

The following chart summarizes the 2017 retirement plan limits and other benefit plan limits. The 2016 limits are provided for reference purposes.

2016 2017
Elective Deferral Limit 401(k), 403(b), 457(b) $18,000 $18,000
Catch-up Limit (age 50+) $6,000 $6,000
Defined Benefit Limit $210,000 $215,000
Defined Contribution Limit $53,000 $54,000
Dollar Limit – Highly Compensated Employees $120,000 $120,000
Officer – Key Employee $170,000 $175,000
Annual Compensation Limit $265,000 $270,000
SEP Eligibility Compensation Limit $600 $600
SIMPLE Deferral Limit $12,500 $12,500
SIMPLE Catch-up Limit (age 50+) $3,000 $3,000
Social Security Taxable Wage Base $118,500 $127,200
ESOP 5 Year Distribution Extension Account Minimum $1,070,000 $1,080,000
Additional Amount for 1-Year Extension $210,000 $215,000
HSA (Self/Family) Maximum Annual Contribution $3,350/$6,750 $3,400/$6,750
HDHP Minimum Deductible Limits $1,300/$2,600 $1,300/$2,600
Out-of-pocket Expense Annual Maximum $6,550/$13,100 $6,550/$13,100
Medical FSA $2,550 $2,600

 

Social Security Taxable Wage Base information is available here, and Revenue Procedure 2016-28, addressing other benefits limits, is available here.

Contact Abigail Clark for more information.