Annual Limit on Contributions and Compensation

Type of Limitation 2017 2016 2015
ANNUAL COMPENSATION LIMIT:
Qualified Plans 270,000 265,000 265,000
SAR SEP 270,000 265,000 265,000
SEP Compensation Limit (minimum) 600 600 600
SEP Compensation Limit (maximum) 270,000 265,000 265,000
LIMITS ON BENEFITS & CONTRIBUTIONS:
Defined Contribution Plans (see note 1) 54,000 53,000 53,000
Defined Benefit Plans (see note 1) 215,000 210,000 210,000
401(k), 403(b), 457(b)(2) and 457(c)(1) (see note 2) 18,000 18,000 18,000
SIMPLE Plans 12,500 12,500 12,500
IRA 5,500 5,500 5,500
CATCH-UP CONTRIBUTIONS:
401(k), 403(b), 457(b)(2) and 457(c)(1) (see note 3) 6,000 6,000 6,000
SIMPLE Plans 3,000 3,000 3,000
IRA 1,000 1,000 1,000
Highly Compensated Threshold 120,000 120,000 120,000
KEY EMPLOYEE THRESHOLD:
Officer 175,000 170,000 170,000
1% Owner 150,000 150,000 150,000
SOCIAL SECURITY:
Income Subject to Social Security Tax 127,200 118,500 118,500
Tax Rate 6.20% 6.20% 6.20%
Medicare Tax Rate 1.45% 1.45% 1.45%
Combined Rate 7.65% 7.65% 7.65%
OTHER:
Tax Credit ESOP Threshold Bal 1,080,000 1,070,000 1,070,000
Amount for Lengthening of 5 yr ESOP Period 215,000 210,000 210,000

1 Effective for limitation years ending in calendar year
2 Effective for limitation years beginning in calendar year
3 Catch up contributions may only be made after the annual deferrals have been maximized either based on the annual limit, or a limitation imposed by your plan document.

Site Login



Find us on Facebook
Follow Us