Retirement Plan Limitations for 2017
November 04, 2016
By Peter Alwardt, CPA and Barry Levine, JD
As an ongoing service to our clients, EisnerAmper LLP is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on October 27 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2017. A few of the limits have changed from 2016, as noted below.
| Code Section | 2017 | 2016 | 2015 |
| IRAs | |||
| IRA Contribution Limit – 219(b)(5)(A) | $5,500 | 5,500 | 5,500 |
| IRA Catch-Up Contributions – 219(b)(5)(B) | $1,000 | 1,000 | 1,000 |
| IRA AGI Deduction Phase-out Starting at | |||
| Joint Return | $99,000 | 98,000 | 98,000 |
| Single or Head of Household | $62,000 | 61,000 | 61,000 |
| SEP | |||
| SEP Minimum Compensation – 408(k)(2)(C) | $600 | 600 | 600 |
| SEP Maximum Compensation – 408(k)(3)(C) | $270,000 | 265,000 | 265,000 |
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
| Annual Compensation – 401(a)(17)/404(l) | $270,000 | 265,000 | 265,000 |
| Elective Deferrals – 402(g)(1) | $18,000 | 18,000 | 18,000 |
| Catch-up Contributions – 414(v)(2)(B)(i) | $6,000 | 6,000 | 6,000 |
| Defined Contribution Limits – 415(c)(1)(A) | $54,000 | 53,000 | 53,000 |
| ESOP Limit – 409(o)(1)(C) – Account Balance | $1,080,000 | 1,070,000 | 1,070,000 |
| ESOP Limit – 409(o)(1)(C) – Lengthening 5-Year Period | $215,000 | 210,000 | 210,000 |
| Other | |||
| HCE Threshold – 414(q)(1)(B) | $120,000 | 120,000 | 120,000 |
| Defined Benefit Annual Limit – 415(b)(1)(A) | $215,000 | 210,000 | 210,000 |
| Key Employee – 416(i)(1)(A)(i) | $175,000 | 170,000 | 170,000 |
| 457 Elective Deferrals – 457(e)(15) | $18,000 | 18,000 | 18,000 |
| Control Employee – 1.61-21(f)(5)(i) | $105,000 | 105,000 | 105,000 |
| Control Employee – 1.61-21(f)(5)(iii) | $215,000 | 215,000 | 210,000 |
| Social Security Taxable Wage Base | $127,200 | 118,500 | 118,500 |
