Last Thursday, the IRS announced new statutory limits for 2017. The most important changes applicable to retirement plans are outlined below.

The most visible limits to the public, those that affect the amount participants can contribute to a plan, remain unchanged.  The §402(g) elective deferral (employee contribution) limit and the “catch-up” contribution limit both remain at $18,000 and $6,000, respectively, for 401(k), 403(b) and most 457 plans.

The §415(c)(1)(A) limit on total contributions to a defined contribution plan on behalf of an individual was increased from $53,000 to $54,000.

The §415(b)(1)(A) limitation on the annual benefit under a defined benefit pension plan increased from $210,000 to $215,000.

The dollar threshold for determining “highly compensated employee” status remains at $120,000, and the annual compensation limit under §401(a)(17) that governs the amount of compensation that may be considered in a defined contribution plan increased from $265,000 to $270,000.

Additionally, the taxable wage base for social security increased from $118,500 to $127,200.  For a full listing of changes, including those impacting IRAs, SEPs and SIMPLEs, please see the IRS’ COLA Table.