Hot off the press from the IRS! No changes to the contribution amounts for 401k and 403b plans for next year. The limit on these plans remains $18,000 with a $6,000 catch-up for those turning age 50 or older. IRA limits also remained the same at $5,500 with a $1,000 catch-up.
Other limits pertaining to retirement plans:
- Total that can be contributed by the employee and employer increased to $54,000
- Annual compensation limit considered for retirement plan benefits increased to $270,000
- Annual compensation of “key employees” in a top-heavy plan increased to $175,000
- Annual compensation of “highly compensated employee” definition remains at $120,000
Cost of living changes were made to other limits including:
- deductibility for IRAs based on income
- income phase-out for Roth IRAs
- income limit for Savers Tax Credit
Visit https://www.irs.gov/uac/newsroom/irs-announces-2017-pension-plan-limitations-401k-contribution-limit-remains-unchanged-at-18000-for-2017 for more information and details.