In October, the IRS announced the cost of living adjustments for pension plan limits for 2017. In general, the limits will not change for 2017. Listed below are some of the limits:
- The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Saving Plan will remain at $18,000.
- The catch-up contribution limit for employees age 50 and over remains at $6,000.
- The AGI (adjusted gross income) limits for the saver’s credit (also known as the retirement savings contribution credit) for low and moderate income workers have increased:
- $62,000 for married couples filing jointly (up from $61,500 in 2016)
- $46,500 for head of household (up from $46,125)
- $31,000 for singles and married individuals filing separately (up from $30,750)
|Plan Limits for Plan Year 2017||2017||2016|
|401(k) Elective Deferrals||$18,000||$18,000|
|403(b)/457 Elective Deferrals||$18,000||$18,000|
|Annual Defined Contribution Limit||$54,000||$53,000|
|Annual Compensation Limit||$270,000||$265,000|
|Catch-Up Contribution Limit||$6,000||$6,000|