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2016 and 2017 Employee Benefit Plan Limitations

Posted by Jennifer V. Gateb | Nov 04, 2016 | 0 Comments

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.

About the Author

Jennifer V. Gateb

Jennifer V. Gateb practices in the areas of general tax and estate planning, ERISA (Employee Retirement Income Security Act of 1974) and related benefit matters.

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