ANNUAL LIMITS



2017 IRS 401(k), 403(b) and most 457 Plan Limits
On October 27, 2016, the Internal Revenue Service announced 2017 cost-of-living adjustments applicable for qualified retirement plans and IRAs. Most plan limits will remain unchanged, while others will rise in 2017.

The announcement highlighted the following:

  • 401(k)/Roth contribution limit remains unchanged at $18,000
  • Catch-up limit remains unchanged at  $6,000
  • Maximum annual contribution for defined contribution has increased to $54,000 from $53,000
  • Social security taxable wage base has increased to 127,200 from $118,500

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. The Internal Revenue Code (IRC) requires the limits to be adjusted annually for cost-of-living increases. INTAC is pleased to present this table for your convenience.

  2018   2017 2016 2015

401(k) and 403(b) Deferral Limit

18,500   18,000 18,000 18,000

457 Deferral Limit

18,500   18,000 18,000 18,000

401(k), 403(b), 457 Catch-up Contribution Limit

6,000   6,000 6,000 6,000

SIMPLE Deferral Limit

12,500   12,500 12,500 12,500

SIMPLE Catch-up Contribution Limit

3,000   3,000 3,000 3,000

Annual Compensation Limit

275,000   270,000 265,000 265,000

Defined Benefit 415 Limit

220,000   215,000 210,000 210,000

Defined Contribution 415 Limit

55,000   54,000 53,000 53,000

Dollar Limit for HCEs

120,000   120,000 120,000 120,000

Dollar Limit for Key Employee

175,000   175,000 170,000 170,000

Social Security Taxable Wage Base

128,400   127,200 118,500 118,500

Individual Retirement Accounts
The limit on annual contributions to an individual retirement account (IRA) will stay at $5,500. The additional catch-up contribution limit for those ages 50 and over will remain $1,000. The deduction for taxpayers making contributions to a traditional IRA has been phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGIs) from $62,000 to $72,000, increased from $61,000 to $71,000 from 2016.

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the AGI phase-out range will be $99,000 to $119,000. 

For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction has been phased out for couples with an AGI from $186,000 to $196,000, up from $184,000 to $194,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and will remain $0 to $10,000.

For a Roth IRA, the AGI phase-out range for taxpayers making contributions will be $186,000 to $196,000 for married couples filing jointly, up from $184,000 to $194,000 in 2013. For singles and heads of household, the income phase-out range will be $118,000 to $133,000, up from $117,000 to $132,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range will remain $0 to $10,000.

The AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low- and moderate-income workers will rise to $62,00 for married couples filing jointly, up from $61,500 in 2016; $46,500 for heads of household, up from $46,125; and $31,000 for singles and married couples filing separately, up from $30,750.