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The IRS has released new guidelines for the 2017 Contribution Limits for company-sponsored retirement plans. If you’re not sure what they are, Leading Retirement Solutions has you covered.

Click here to find out what to do if you missed the PPA Restatement Deadline.

Retirement Plan Maximum Contributions

IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.

Contribution Highlights

  • $18,000 – The employee contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
  • $6,000 – The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
  • $54,000 – The total employee + employer contribution that can be made to a defined contribution plan under Section 415(c)(1)(A) is increased from $53,000 to $54,000.
  2017 2016 2015
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation 270,000 265,000 265,000
Elective Deferrals 18,000 18,000 18,000
Catch-up Contributions 6,000 6,000 6,000
Defined Contribution Limits 54,000 53,000 53,000
ESOP Limits 1,080,000 1,070,000 1,070,000
215,000 210,000 210,000
Other
HCE Threshold 120,000 120,000 120,000
Defined Benefit Limits 215,000 210,000 210,000
Key Employee 175,000 170,000 170,000
457 Elective Deferrals 18,000 18,000 18,000
Control Employee (board member or officer) 105,000 105,000 105,000
Control Employee (compensation-based) 215,000 215,000 215,000
Taxable Wage Base 127,200 118,500 118,500
IRAs
IRA Contribution Limit $5,500 $5,500 $5,500
IRA Catch-Up Contributions 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 600 600 600
SEP Maximum Contribution 54,000 53,000 53,000
SEP Maximum Compensation 270,000 265,000 265,000
SIMPLE Plans
SIMPLE Maximum Contributions 12,500 12,500 12,500
Catch-up Contributions 3,000 3,000 3,000

Additional information can be found on the IRS Website:

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