Talk To An Expert

Annual Limitations

Qualified retirement plans are funded by contributions from employers and/or employees. These contributions are subject to a number of annual limitations. Compliance with these limitations is important since the qualification of the plan is at stake.

HAVE ANY LIMITATIONS INCREASED FOR 2017?

The following limits have increased for 2017:

  • The Annual Addition Dollar Maximum increased to $54,000 from $53,000
  • The Annual Compensation limit increased to $270,000 from $265,000
  • The SEP Annual Compensation Limit increased to $270,000 from $265,000
  • The Social Security Wage Base increased to $127,200 from $118,500
  • Defined Benefit Plans increased to $215,000 from $210,000

WHAT ARE THE ANNUAL LIMITATIONS FOR 2017?

2017 Limitations 2016 Limitations
Defined Benefit Dollar Maximum $215,000 $210,000
Annual Addition Dollar Maximum $54,000 $53,000
Employee 401(k)/403(b)/457 Contributions $18,000 $18,000
Catch-up Contributions (Age 50 or older) $6,000 $6,600
Highly Compensated Employee Threshold $120,000 $120,000
Annual Compensation $270,000 $265,000
Social Security Taxable Wage Base $127,200 $118,500