[co-author: Julie Wagner]
The IRS recently released updated limits for retirement plans. Our summary of those limits (along with the limits from the last few years) is below.
Type of Limitation |
2017 |
2016 |
2015 |
2014 |
Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1)) |
$18,000 |
$18,000 |
$18,000 |
$17,500 |
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate) |
$6,000 |
$6,000 |
$6,000 |
$5,500 |
SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals |
$3,000 |
$3,000 |
$3,000 |
$2,500 |
415 limit for Defined Benefit Plans |
$215,000 |
$210,000 |
$210,000 |
$210,000 |
415 limit for Defined Contribution Plans |
$54,000 |
$53,000 |
$53,000 |
$52,000 |
Annual Compensation Limit |
$270,000 |
$265,000 |
$265,000 |
$260,000 |
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 |
$400,000 |
$395,000 |
$395,000 |
$385,000 |
Highly Compensated Employee 414(q)(1)(B) |
$120,000 |
$120,000 |
$120,000 |
$115,000 |
Key employee in top heavy plan (officer) |
$175,000 |
$170,000 |
$170,000 |
$170,000 |
SIMPLE Salary Deferral |
$12,500 |
$12,500 |
$12,500 |
$12,000 |
Tax Credit ESOP Maximum balance |
$1,080,000 |
$1,070,000 |
$1,070,000 |
$1,050,000 |
Amount for Lengthening of 5-Year ESOP Period |
$215,000 |
$210,000 |
$210,000 |
$210,000 |
Taxable Wage Base |
$127,200 |
$118,500 |
$118,500 |
$117,000 |
FICA Tax for employees and employers |
7.65% |
7.65% |
7.65% |
7.65% |
Social Security Tax for employees |
6.2% |
6.2% |
6.2% |
6.2% |
Social Security Tax for employers |
6.2% |
6.2% |
6.2% |
6.2% |
Medicare Tax for employers and employees |
1.45% |
1.45% |
1.45% |
1.45% |
Additional Medicare Tax* |
.9% of comp >$200,000 |
.9% of comp >$200,000 |
.9% of comp > $200,000 |
.9% of comp > $200,000 |
*For taxable years beginning after 12/31/12, an employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year for single/head of household filing status ($250,000 for married filing jointly).
[View source.]