2017 Qualified Plan Cost of Living Increases, 2017 Social Security Taxable Wage Base 2

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October 21, 2015

2017 Qualified Plan Cost of Living Increases, 2017 Social Security Taxable Wage Base The Internal Revenue Service has announced the cost-of-living adjustments for the various qualified retirement plan limits. Some of the limits shown below remain unchanged from last year, but others have increased.

Qualified Plan Limit  Cost-of-Living Adjustments
401(k) and 403(b) elective deferral limit  2016 – $18,000

 2017 – $18,000

$200,000 compensation limit  2016 – $265,000

 2017 – $270,000

$160,000 defined benefit limit  2016 – $210,000

 2017 – $215,000

$40,000 defined contribution limit  2016 – $53,000

 2017 – $54,000

$80,000 definition of highly compensated employee  2016 – $120,000

 2017 – $120,000

SIMPLE IRA deferral limit  2016 – $12,500

 2017 – $12,500

Code Section 457 deferred compensation plan deferral limit  2016 – $18,000

 2017 – $18,000

Code Section 414(v) catch-up contribution limit for employee deferrals  2016 – $6,000

 2017 – $6,000

All of the above are plan year limits (i.e., for the plan year which begins in 2017), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $127,200 for 2017, which is an increase from the 2016 limit of $118,500.  If you have questions regarding the above, please contact Attorney Mary Ellen Schill, who prepared this article, or any of the attorneys within the Employment, Benefits & Labor Relations Group of Ruder Ware.

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