2017 401(k) and 403(b) IRS Limits

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 the IRS official website for more information and details.