IRS Announces 2017 Pension Limits
The IRS has announced the cost-of-living (COLA) adjustments to various pension limits that will apply in 2017. The maximum annual benefit payable under a defined benefit plan has increased to $215,000. However, there is no increase in the elective deferral limit under a 401(k) plan or 403(b) plan for 2017. The key 2017 pension limits, as well as the Social Security taxable wage base, are noted in the chart below, along with prior years' limits.
|
Limit |
2017 |
2016 |
2015 |
2014 |
|
Maximum Annual Pension Benefit |
$215,000 |
$210,000 |
$210,000 |
$210,000 |
|
Maximum Contribution to a DC Plan |
$54,000 |
$53,000 |
$53,000 |
$52,000 |
|
Maximum Elective 401(k), 403(b) and 457 Deferrals |
$18,000 |
$18,000 |
$18,000 |
$17,500 |
|
Qualified Plan Compensation Limit |
$270,000 |
$265,000 |
$265,000 |
$260,000 |
|
Social Security Taxable Wage Base |
$127,200 |
$118,500 |
$118,500 |
$117,000 |
If you have any questions about these or other limits or about the impact on your plan, contact your Cheiron consultant.
Cheiron is an actuarial consulting firm that provides actuarial and consulting advice. However, we are neither attorneys nor accountants. Accordingly, we do not provide legal services or tax advice.