Annual Plan Limits

Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.

2017* 2015-2016* 2014
Compensation $270,000 $265,000 $260,000
Limits on benefits and contributions:
Defined contribution plans $54,000 $53,000 $52,000
Defined benefit plans $215,000 $210,000 $210,000
401(k), 403(b) and 457 plan elective deferrals $18,000 $18,000 $17,500
SIMPLE plan elective deferrals $12,500 $12,500 $12,000
IRA $5,500 $5,500 $5,500
Catch-up contributions:
401(k), 403(b) and 457 plans $6,000 $6,000 $5,500
SIMPLE plans $3,000 $3,000 $2,500
IRA $1,000 $1,000 $1,000
“Highly Compensated” definition $120,000 $120,000 $115,000
“Key Employee” definition:
Officer $175,000 $170,000 $170,000
1% owner $150,000 $150,000 $150,000
Social Security Taxable wage base $127,200 $118,500 $117,000

*The 2015 limits remained unchanged for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment.

About Us

We are pioneers in retirement planning, featuring tax-advantaged defined benefit pension plans as exit strategies for high net worth clients. We partner with top industry Advisers to bring their clients preferred solutions to achieve large income tax deductions.

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Coral Gables, FL

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Phone: 1-800-717-4723

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