IRA and Retirement Plan Limitations For 2017
By William Zorc, Manager, Tax & Business
The IRS has released Notice 2016-62, which outlines the adjustments to IRA and qualified benefit plan limitations for 2017, as well as the adjustment to the Social Security taxable wage base.
Highlights of the limitations include the following:
- The 401(k), 403(b) and 457 deferral and age 50 catch-up limitations remain unchanged at $18,000 and $6,000, respectively.
- The SIMPLE IRA deferral and age 50 catch-up limitations remain unchanged at $12,500 and $3,000, respectively.
- The Annual Compensation limit has increased from $265,000 to $270,000.
- The Defined Contribution Plan annual addition limit has increased from $53,000 to $54,000.
- The Defined Benefit Plan annual benefit limit has increased from $210,000 to $215,000.
- The IRA contribution (Traditional or Roth) and age 50 catch up limit remains unchanged at $5,500 and $1,000, respectively.
- The Social Security taxable wage base has increased from $118,500 to $127,200.
If you have any questions or concerns about how the updated limitations affect you or your company’s retirement plan, please contact your Marcum tax advisor.