- by Christopher Egoville, PCS
The Internal Revenue Service (IRS) has announced its 2017cost-of-living adjustments (COLAs) for pension plans. Many of the pension plan limitations will stay the same for 2017, but there are some that will increase.
Some of the limits include:
The elective deferral limit (i.e., participant contribution limit) for 401(k), 403(b) and 457(b) plans remains $18,000 for 2017. The catch-up contribution limit remains $6,000 for 2017.
The compensation limit (i.e., the maximum amount of compensation that can be considered for plan purposes) is increased to $270,000 for 2017 from $265,000 in 2016.
The annual addition contribution limit (i.e., that maximum amount of combined employee and employer contributions that can be contributed to a participant’s account) for individuals in defined contribution plans, such as 401(k) and 403(b)plans, is increased to $54,000 for 2017 from $53,000 in 2016. This amount does not include catch-up contributions.
The compensation threshold for determining highly compensated employees for purposes of nondiscrimination testing remains $120,000 for 2017.
The compensation threshold for determining officer key employees for purposes of top heavy testing is increased to $175,000 from $170,000 in 2016.
The Social Security Wage Base for 2017is increased to $127,200 from $118,000 in 2016.
If you would like to see all of the cost of living adjustments, please click here