It’s fall, time for the World Series, college football rivalries and of course, the IRS’s annual update to the retirement plan limits. Like last year, there were no dramatic changes made by the IRS in these limits, which are illustrated in our annual retirement plan limit chart. The most substantial change to the chart was the increase to the Social Security Taxable Wage Base, which was ramped up from 2016, to $127,200 for 2017. Also, the annual compensation limit increased from $265,000 to $270,000, the defined contribution plan limit received a $1,000 bump, up to $54,000, and the defined benefit plan limit was increased to $215,000, up from $210,000 for 2016.

  2016 2017
ELECTIVE DEFERRAL ANNUAL LIMITS    
    401(k), 403(b) and SEPs  $18,000  $18,000
    457 Plans   $18,000  $18,000
    SIMPLE IRAs and 401(k)s   $12,500  $12,500
 CATCH-UP CONTRIBUTIONS    
    401(k), 403(b) and SEPs  $6,000  $6,000
    SIMPLE IRAs and 401(k)s  $3,000  $3,000
 MAXIMUM ANNUAL PLAN  $265,000  $270,000
415 ANNUAL ADDITIONS    
    Defined Benefit Plan Limit  $210,000  $215,000
    Defined Contribution Plan Limit  $53,000  $54,000
 HIGHLY COMPENSATED EMPLOYEE  $120,000  $120,000
 KEY EMPLOYEE    
    Officers  $170,000  $175,000
    1% Owner  $150,000  $150,000
 SOCIAL SECURITY TAXABLE WAGE BASE  $118,500  $127,200