IRS Announces New Pension Limits for 2017
As you know, your company sponsors a Qualified Retirement Plan. The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code Section 415 requires the limits to be adjusted annually for cost-of-living increases.
We are very excited to inform you that the Internal Revenue Service has just announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2017 Tax Year. In general, many of the pension plan limitations will change for 2017 because the increase in the cost-of-living met the statutory thresholds that trigger their adjustment.
They are as follows:
| Annual Compensation Limit | $270,000 | (was $265,000) |
| Employee Deferral Limit | $18,000 | (no change) |
| Catch-up Deferral Limit | $6,000 | (no change) |
| Defined Contribution Plan Limit | $54,000 | (was $53,000) |
| Highly Compensated Employee | $120,000 | (no change) |
| Defined Benefit Plan Limit | $215,000 | (was $210,000) |
| Social Security Taxable Wage Base | $127,200 | (was $118,500) |
Jo-Ann Massanova
President (CPC, QPA, ERPA, CLU, ChFC) at Estate & Pension Advisory Board
Jo-Ann is President and a shareholder with the firm of Estate & Pension Advisory Board in Cherry Hill, New Jersey. A privately owned Third Party Administrator (TPA) in existence for fifty years. The company provides actuarial, administration and consulting services for an array of different types qualified retirement plans sponsored by small to mid size companies.
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