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2017 Cost of Living Changes

The IRS has released 2017 cost-of-living adjustments (COLAs) for various retirement plan limitations, with some limitations increasing and others remaining at their 2016 levels. Changes include the following:

  • Annual additions limit for defined contribution plans increased from $53,000 to $54,000
  • Maximum annual benefit limit under a defined benefit plan increased from $210,000 to $215,000
  • Annual compensation limit used to determine qualified plan benefits or contributions increased from $265,000 to $270,000
  • Compensation limit used in determining whether officers are key employees for top-heavy plan purposes increased from $170,000 to $175,000

The following limitations remain unchanged:

  • Elective deferrals to 401(k), 403(b), and most 457 plans: $18,000
  • Catch-up contributions to 401(k), 403(b), and most 457 plans: $6,000
  • SIMPLE plan deferrals: $12,500
  • SIMPLE plan catch-up contributions: $3,000
  • Dollar limit used in the definition of highly compensated employee: $120,000
  • Individual retirement account (IRA) contributions: $5,500
  • IRA catch-up contributions: $1,000

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