The Internal Revenue Service announced the 2017 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2017. The elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, as well as the catch-up contribution limit, remain unchanged from 2016. Other limits, such as the annual compensation limit under 401(a)(17), the limit used in the definition of key employee and the maximum annual contribution limit under Code Section 415, will increase in 2017.
Retirement Plan Limits and Social Security Wage Base
|
2017 Limits |
2016 Limits |
401(k)/403(b)/457(b) Elective Deferrals |
$18,000 |
$18,000 |
Catch-Up Contribution (plans other than SIMPLE plans) |
$6,000 |
$6,000 |
SIMPLE Plan Employee Deferrals |
$12,500 |
$12,500 |
SIMPLE Plan Catch-Up Contributions |
$3,000 |
$3,000 |
Plan Maximum Annual Contribution – Defined
Contribution Plans (Section 415(c)) |
$54,000 |
$53,000 |
Maximum Annual Benefit – Defined Benefit
Plans (Section 415(b)) |
$215,000 |
$210,000 |
Compensation Limit under Section 401(a)(17) |
$270,000 |
$265,000 |
Highly Compensated Employee Definition under Section 414(q) |
$120,000 |
$120,000 |
Key Employees Officer Compensation for Top-Heavy Plans |
$175,000 |
$170,000 |
Maximum ESOP Account Balance Subject to 5-Year Distribution Period |
$1,080,000 |
$1,070,000 |
Social Security (FICA) Wage Base |
$127,200 |
$118,500 |
Health Savings Account and High Deductible Health Plan Limits
Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2017. The HSA limit for self-only coverage will increase to $3,400 for 2017 but the limit will remain $6,750 for individuals with family coverage. The minimum annual deductible and maximum annual out-of-pocket expense limits for high deductible health plans for both self-only and family coverage remain unchanged from 2016.
Health Savings Accounts/HDHP Limits
|
2017 Limits |
2016 Limits |
HSA Contribution -- Annual Contribution Limit |
|
|
Self-Only Coverage |
$3,400 |
$3,350 |
Family Coverage |
$6,750 |
$6,750 |
Catch-Up Contributions (age 55 or older) |
$1,000 |
$1,000 |
High Deductible Health Plan – Minimum Annual
Deductible |
|
|
Self-Only Coverage |
$1,300 |
$1,300 |
Family Coverage |
$2,600 |
$2,600 |
High Deductible Health Plan – Maximum Out of Pocket
Limit |
|
|
Self-Only Coverage |
$6,550 |
$6,550 |
Family Coverage |
$13,100 |
$13,100 |