The Internal Revenue Service (IRS) announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2017 tax year. Highlights of limitations that changed for 2017 include a $1,000 increase in the phase-out range for single taxpayers covered by a workplace retirement plan from $61,000-$71,000 to $62,000-$72,000, and a $2,000 increase to the phase-out range for IRA contributors who are not covered by a workplace retirement plan and are married to someone who is covered from $184,000-$194,000 to $186,000-$196,000. The phase-out range for singles and heads of households making contributions to a Roth IRA was also increased by $1,000 from $117,000-$132,000 to $118,000-$133,000. Other limitations that were changed for 2017 include a $1,000 increase in the maximum total annual contributions limit for defined contribution plans from $53,000 to $54,000, a $5,000 increase in the compensation dollar limit used to determine key employees in a top-heavy plan from $170,000 to $175,000, and a $5,000 increase in the maximum annual compensation limit from $265,000 to $270,000.
On the other hand, the limitations listed below did not change after taking into account the applicable rounding rules.
2017 Pension Plan Limits that Remain Unchanged from 2016
Annual salary deferrals for 401(k) and 403(b) plans
Age 50 catch-up contributions
Traditional and Roth IRA contributions
Traditional and Roth IRA catch-up contributions
SIMPLE 401(k) contribution limit
Compensation threshold for highly compensated employees “HCE”
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