The following is an outline of the Internal Revenue Service's maximum dollar limitations applicable to employee benefit plans in effect in 2016 and 2017. The 2017 limitations differ only slightly from the 2016 limitations and become effective January 1, 2017.
Maximum Dollar Limitations
|
Employee Deferral Limits |
2017 |
2016 |
|
401(k) Contribution |
$18,000 |
$18,000 |
|
403(b) Contribution |
$18,000 |
$18,000 |
|
457 Contribution |
$18,000 |
$18,000 |
|
SIMPLE 401(k)/IRA |
$12,500 |
$12,500 |
|
Employee Catch-Up Limits |
2017 |
2016 |
|
401(k), 403(b), 457 |
$6,000 |
$6,000 |
|
SIMPLE 401(k)/IRA |
$3,000 |
$3,000 |
|
Other Plan Limitations |
2017 |
2016 |
|
Compensation Cap |
$270,000 |
$265,000 |
|
Defined Benefit Plan Maximum Benefit |
$215,000 |
$210,000 |
|
Defined Contribution Plan Maximum Contribution |
$54,000 |
$53,000 |
|
Highly Compensated Employees' Compensation Exceeding |
$120,000 |
$120,000 |
|
Key Employee Officer Compensation |
$175,000 |
$170,000 |
|
Key Employee 1% Owner |
$150,000 |
$150,000 |
|
SEP Participation Coverage Compensation Level |
$600 |
$600 |
|
ESOP Threshold for 5-Year Distribution Period |
$1,080,000 |
$1,070,000 |
|
ESOP Incremental Threshold for Extending 5-Year Distribution Period (maximum 5 additional years) |
$215,000 |
$210,000 |
Contact the attorneys at Butterfield Schechter LLP if you have questions about how the new 2017 limitations may affect the administration of your employee benefit plan.
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