IRS Releases Updated Cost of Living Adjustments for the 2017 Plan Year

Retirement Plan Updated Limits

2017

2016

2015

2014

2013

Maximum Elective Deferral 402(g)(1) for 401(k)/403b/457 Plans

$18,000

$18,000

$18,000

$17,500

$17,500

Catch-up Contributions 414(v)(2)(B)(i) for 401(k)/403b/457 Plans

$6,000

$6,000

$6,000

$5,500

$5,500

Defined Contribution Plan

$54,000

$53,000

$53,000

$52,000

$51,000

Annual Additions Limit 415(c)(1)(A)

Defined Benefit Plan

$215,000

$210,000

$210,000

$210,000

$205,000

Annual Benefit Limit 415(b)(1)(A)

Qualified Plan

$270,000

$265,000

$265,000

$260,000

$255,000

Compensation Limit 401(a)(17)/404(l)

Highly Compensated Employees Compensation Test 414(q)(1)(B)

$120,000

$120,000

$120,000

$115,000

$115,000

Top Heavy Key EE Definition

$175,000

$170,000

$170,000

$170,000

$165,000

Officer Test 416(i)(1)(A)(i)

SIMPLE Plan

$12,500

$12,500

$12,500

$12,000

$12,000

Maximum Contributions 408(p)(2)(E)

SIMPLE Plan Catch-up Contributions 414(v)(2)(B)(ii)

$3,000

$3,000

$3,000

$2,500

$2,500

SEP Maximum Contribution 408(j)

$54,000

$53,000

$53,000

$52,000

$51,000

SEP Minimum Compensation 408(k)(2)(C)

$600

$600

$600

$550

$550

SEP Maximum Compensation 408(k)(3)(C)

$270,000

$265,000

$265,000

$260,000

$255,000

IRA Contribution Limit 219(b)(5)(A)

$5,500

$5,500

$5,500

$5,500

$5,500

IRA Catch-up Contributions 219(b)(5)(B)

$1,000

$1,000

$1,000

$1,000

$1,000

ESOP Limits 409(o)(1)(C)(ii) Five Year Distribution Threshold

$1,080,000

$1,070,000

$1,070,000

$1,050,000

$1,035,000

ESOP Limits 409(o)(1)(C)(ii) Additional Year Threshold

$215,000

$210,000

$210,000

$210,000

$205,000

Control Employee (board member or officer) 1.61-21(f)(5)(i)

$105,000

$105,000

$105,000

$105,000

$100,000

Control Employee (compensation-based) 1.61-21(f)(5)(iii)

$215,000

$215,000

$215,000

$210,000

$205,000

Welfare Plan Updated Limits

2017

2016

2015

2014

2013

Flexible Spending Arrangement 125(i)

$2,600

$2,550

$2,550

$2,500

$2,500

Health Savings Account 223(b)(2)(A)

$3,400

$3,350

$3,350

$3,300

$3,250

Adoption Assistance Credit 137(a)(2)

$13,570

$13,400

$13,400

$13,190

$12,970

FICA Social Security Tax Updated Limit

2017

2016

2015

2014

2013

Social Security Taxable Wage Base

$127,200

$118,500

$118,500

$117,000

$113,700

Social Security Insurance Rates

6.20%

6.20%

$0

6.20%

6.20%

Medicare Insurance Rates

1.45%

1.45%

1.45%

1.45%

1.45%

Additional Medicare Insurance Tax Rates for wages, compensation or self-employment income in excess of $250,000/$125,000/ $200,000 depending on filing status

0.90%

0.90%

0.90%

0.90%

0.90%