Benefit and Contribution Limits for 2017
The Commissioner of Internal Revenue announced the 2017 dollar limitations for benefits and contributions that apply to retirement and cafeteria plans. Some limits have increased while others remained the same. The Social Security Administration increased the Social Security taxable wage base. Increases for health savings accounts were announced this summer. The following chart shows the 2017 limits and the similar limits for 2016.
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Benefit Limits Under the Internal Revenue Code and Social Security |
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Description |
2016 Limit |
2017 Limit |
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Compensation Cap (401(a)(17)) |
$265,000 |
$270,000 |
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Elective Deferral Limitation under 402(g)(1) for elective deferrals for 401(k) plans, SEPs and 403(b) plans |
$18,000 |
$18,000 |
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Catch-Up Contributions for Individuals Age 50 and Older For SIMPLE IRAs or SIMPLE 401(k) plans |
$6,000 $3,000 |
$6,000 $3,000 |
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Defined Benefit Maximum Annual Accrual |
$210,000 |
$215,000 |
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Defined Contribution Maximum Annual Addition |
$53,000 |
$54,000 |
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Highly Compensated Employee Compensation Threshold Key Employee in Top-Heavy Plans Compensation Threshold |
$120,000 $170,000 |
$120,000 $175,000 |
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ESOP threshold for determining maximum account balance subject to 5-year distribution period Regular Limit |
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SEP Compensation Threshold for Participation |
$600 |
$600 |
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SIMPLE IRA Maximum Pre-Tax Contribution |
$12,500 |
$12,500 |
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Deferral Limit for 457(b) Plans of Governmental |
$18,000 |
$18,000 |
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IRA Maximum Deduction |
$5,500 |
$5,500 |
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Social Security Taxable Wage Base |
$118,500 |
$127,200 |
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Health Savings Account Maximum Contributions Family Coverage |
$6,750 |
$6,750 |
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Health Flexible Spending Account Annual Limit |
$2,550 |
$2,600 |
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