{"id":165,"date":"2016-11-04T17:38:21","date_gmt":"2016-11-04T17:38:21","guid":{"rendered":"http:\/\/myebdbenefits.com\/blog\/?p=165"},"modified":"2016-11-04T17:38:36","modified_gmt":"2016-11-04T17:38:36","slug":"irs-announces-2017-retirement-plan-contribution-limits-missouri-benefit-advisors","status":"publish","type":"post","link":"http:\/\/myebdbenefits.com\/blog\/2016\/11\/04\/irs-announces-2017-retirement-plan-contribution-limits-missouri-benefit-advisors\/","title":{"rendered":"IRS Announces 2017 Retirement Plan Contribution Limits | Missouri Benefit Advisors"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-166 alignright\" src=\"http:\/\/myebdbenefits.com\/blog\/wp-content\/uploads\/2016\/11\/1031-300x225.jpg\" alt=\"US Currency: Wads of US bills fastened with rubber bands, close-up\" width=\"300\" height=\"225\" srcset=\"http:\/\/myebdbenefits.com\/blog\/wp-content\/uploads\/2016\/11\/1031-300x225.jpg 300w, http:\/\/myebdbenefits.com\/blog\/wp-content\/uploads\/2016\/11\/1031.jpg 682w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>On October 27, 2016, the Internal Revenue Service (IRS) released <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-16-62.pdf\" target=\"_blank\">Notice 2016-62<\/a> announcing cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. Many pension plan limitations will not change in 2017 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. Some items, though, will see minor increases. The following is a summary of the limits for 2017.<\/p>\n<p>For 401(k), 403(b), and most 457 plans and the federal government\u2019s Thrift Savings Plans:<\/p>\n<ul>\n<li>The elective deferral (contribution) limit remains unchanged at $18,000 for 2017.<\/li>\n<li>The catch-up contribution limit for employees aged 50 and over who participate in these plans remains at $6,000 for 2017.<\/li>\n<\/ul>\n<p>For individual retirement arrangements (IRAs):<\/p>\n<ul>\n<li>The limit on annual contributions remains unchanged at $5,500 for 2017.<\/li>\n<li>The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000 for 2017.<\/li>\n<\/ul>\n<p>For simplified employee pension (SEP) IRAs and individual\/solo 401(k) plans:<\/p>\n<ul>\n<li>Elective deferrals increase to $54,000 for 2017, based on an annual compensation limit of $270,000 (up from the 2016 amounts of $53,000 and $265,000).<\/li>\n<li>The minimum compensation that may be required for participation in a SEP remains unchanged at $600 for 2017.<\/li>\n<\/ul>\n<p>For savings incentive match plan for employees (SIMPLE) IRAs:<\/p>\n<ul>\n<li>The contribution limit on SIMPLE IRA retirement accounts remains unchanged at $12,500 for 2017.<\/li>\n<li>The SIMPLE catch-up limit remains unchanged at $3,000 for 2017.<\/li>\n<\/ul>\n<p>For defined benefit plans:<\/p>\n<ul>\n<li>The basic limitation on the annual benefits under a defined benefit plan is increased to $215,000 for 2017 (from $210,000 for 2016).<\/li>\n<\/ul>\n<p>Other changes:<\/p>\n<ul>\n<li>Highly compensated and key employee thresholds:\n<ul>\n<li>The threshold for determining \u201chighly compensated employees\u201d remains unchanged at $120,000 for 2017.<\/li>\n<li>The threshold for officers who are \u201ckey employees\u201d in a top-heavy plan increases to $175,000 for 2017 (from $170,000 for 2016).<\/li>\n<\/ul>\n<\/li>\n<li>Social Security cost of living adjustment:\u00a0In a separate <a href=\"https:\/\/www.ssa.gov\/news\/press\/factsheets\/colafacts2017.pdf\" target=\"_blank\">announcement<\/a>, the Social Security Administration stated that the taxable wage base will increase to $127,200 for 2017, an increase of $8,700 from the 2016 taxable wage base of $118,500. Thus, the maximum Social Security tax liability will increase for both employees and employers.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Originally published by <a href=\"https:\/\/www.thinkhr.com\/blog\/hr\/irs-announces-2017-retirement-plan-contribution-limits\/\" target=\"_blank\">ThinkHR &#8211; Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On October 27, 2016, the Internal Revenue Service (IRS) released Notice 2016-62 announcing cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. Many pension plan limitations will not change in 2017 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. &hellip; <a href=\"http:\/\/myebdbenefits.com\/blog\/2016\/11\/04\/irs-announces-2017-retirement-plan-contribution-limits-missouri-benefit-advisors\/\">Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,43,15],"tags":[10,11,30,29,26,27,116,16,6,118,90,117,95],"class_list":["post-165","post","type-post","status-publish","format-standard","hentry","category-blog","category-employee-benefits","category-irs","tag-blog","tag-employee-benefits","tag-financial-advisors","tag-financial-planning","tag-hr","tag-human-resources","tag-ira","tag-irs","tag-missouri-employee-benefits","tag-retirement-plan-contributions","tag-retirement-plans","tag-sep","tag-springfield-benefit-advisors"],"_links":{"self":[{"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/posts\/165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/comments?post=165"}],"version-history":[{"count":2,"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/posts\/165\/revisions"}],"predecessor-version":[{"id":168,"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/posts\/165\/revisions\/168"}],"wp:attachment":[{"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/media?parent=165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/categories?post=165"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/myebdbenefits.com\/blog\/wp-json\/wp\/v2\/tags?post=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}