The IRS has released 2017 cost-of-living adjustments (COLAs) for various retirement plan limitations, with some limitations increasing and others remaining at their 2016 levels. Changes include the following:
- Annual additions limit for defined contribution plans increased from $53,000 to $54,000
- Maximum annual benefit limit under a defined benefit plan increased from $210,000 to $215,000
- Annual compensation limit used to determine qualified plan benefits or contributions increased from $265,000 to $270,000
- Compensation limit used in determining whether officers are key employees for top-heavy plan purposes increased from $170,000 to $175,000
The following limitations remain unchanged:
- Elective deferrals to 401(k), 403(b), and most 457 plans: $18,000
- Catch-up contributions to 401(k), 403(b), and most 457 plans: $6,000
- SIMPLE plan deferrals: $12,500
- SIMPLE plan catch-up contributions: $3,000
- Dollar limit used in the definition of highly compensated employee: $120,000
- Individual retirement account (IRA) contributions: $5,500
IRA catch-up contributions: $1,000
