The IRS recently released its 2017 employee benefits limitations for retirement plans. The following chart lists common limitations relevant for many employers.
2017 | 2016 | 2015 | |
401(k), 403(b), 457(b), Pension, etc. | |||
Annual Compensation | $270,000 | $265,000 | $265,000 |
Elective Deferrals | 18,000 | 18,000 | 18,000 |
Catch-up Contributions | 6,000 | 6,000 | 6,000 |
Defined Contribution Limits | 54,000 | 53,000 | 53,000 |
Defined Benefit Limits | 215,000 | 210,000 | 210,000 |
HCE Threshold | 120,000 | 120,000 | 120,000 |
Key Employee | 175,000 | 170,000 | 170,000 |
ESOP Limits | 1,080,000 215,000 |
1,070,000 210,000 |
1,070,000 210,000 |
IRA | |||
IRA Contribution Limit | $5,500 | $5,500 | $5,500 |
IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 |
IRA AGI Deduction Phase-out Starting at | |||
Joint Return | $99,000 | $98,000 | $98,000 |
Single or Head of Household | 62,000 | 61,000 | 61,000 |
SEP | |||
SEP Minimum Compensation | $600 | $600 | $600 |
SEP Maximum Contribution | 54,000 | 53,000 | 53,000 |
SEP Maximum Compensation | 270,000 | 265,000 | 265,000 |
SIMPLE Plans | |||
SIMPLE Maximum Contributions | $12,500 | $12,500 | $12,500 |
Catch-up Contributions | 3,000 | 3,000 | 3,000 |
Other | |||
457 Elective Deferrals | $18,000 | $18,000 | $18,000 |
Control Employee (board member or officer) | 105,000 | 105,000 | 105,000 |
Control Employee (compensation-based) | 215,000 | 215,000 | 215,000 |
Taxable Wage Base | 127,200 | 118,500 | 118,500 |
Health Plans | |||
Out-of-Pocket Maximums (Self-Only)1 2 | $7,150 | $6,850 | $6,600 |
Out-of-Pocket Maximums (Other than Self-Only)1 2 | 14,300 | 13,700 | 13,200 |
Transitional Reinsurance Fee (per Covered Life)3 | 0 | 27 | 44 |
Health FSA Salary Reduction Cap4 | 2,600 | 2,550 | 2,550 |
Employer Shared Responsibility - 4980H(a) Failure to Offer Coverage2 5 | 2,000 | 2,000 | 2,080 |
Employer Shared Responsibility - 4980H(b) Failure to Offer Affordable, Minimum Value Coverage2 5 | 3,000 | 3,000 | 3,000 |
1These limits do not apply to grandfathered or retiree-only plans.
2These amounts are indexed to increase based on the average per capita premium for U.S. health insurance coverage from the prior calendar year. The Out-of-Pocket maximum limit for self-only coverage applies to all individuals (regardless of whether the individual is in self-only or another level of coverage). For example, a family plan with a $14,300 family Out-of-Pocket limit cannot have cost sharing exceeding $7,150 for an individual enrollee in the plan.
3These fees apply on a calendar year basis.
4These fees apply on a plan year basis and are indexed for CPI-U.
5These fees apply on a calendar year basis and are assessed monthly at 1/12 of the annual amount.
In addition, the Patient Protection and Affordable Care Act imposes a fee to help fund the Patient Centered Outcomes Research Institute (PCORI). For plans with years ending between Oct. 1, 2015, and Sept. 30, 2016, the PCORI fee is $2.17 per covered life. For plan years ending after Sept. 30, 2016, and before December 31, 2017, the PCORI fee is $2.26 per covered life. Future amounts will be subject to medical inflation.