The IRS has announced its annual cost-of-living adjustments for certain retirement plan thresholds. Due to relatively low inflation rates, the adjustments for 2017 are minimal or nonexistent, as shown below.
Maximum annual dollar benefit for a
defined benefit plan $210,000 $215,000
Maximum dollar limit on additions to
a defined contribution plan $53,000 $54,000
Maximum amount of compensation taken into
account for qualified retirement plans $265,000 $270,000
Dollar limit for elective deferrals to a 401(k) plan* $18,000 $18,000
(* $24,000 if age 50 or older)
Dollar limit for contributions to a SIMPLE plan* $12,500 $12,500
(* $15,500 if age 50 or older)
Note: The annual limit for contributions to traditional and Roth IRAs remains at $5,500 ($6,500 if age 50 or older) for 2017. Phase-out levels for IRA and Roth contributions are adjusted slightly.