2017 Cost of Living Adjustments

The IRS has released the cost of living adjustments that affect the dollar limits for both retirement plans and health & welfare plans for the 2017 tax year. Most limits will remain unchanged from 2016 to 2017 because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment.

Please contact your Nyhart consultant for additional information or questions.

2016 2017
Retirement Limitations
401(k) / 403(b) / 457 Plan Maximum Elective Deferral $18,000 No change
Qualified Plan Compensation Limit $265,000 $270,000
Catch-Up Contribution Limit for all plans other than 401(k)(11) and 408(p) plans $6,000 No change
Catch-up Contribution Limit for 401(k)(11) and 408(p) $3,000 No change
Highly Compensated Employee Definition $120,000 No change
Top Heavy Key Employee Definition $170,000 $175,000
Defined Contribution Annual Additions Limit $53,000 $54,000
Defined Benefit Annual Benefit Limit $210,000 $215,000
Social Security Taxable Wage Base $118,500 $127,200
Flexible Spending Accounts (FSAs)
Health FSA Limit $2,550 $2,600
Dependent Care Account
Married individuals, filing separately $2,500 No change
Households $5,000 No change
Health Savings Account Limitations (HSAs)
HSA Contribution Limits
Individual $3,350 $3,400
Family $6,750 No change
Catch-up $1,000 No change
HDHP Out of Pocket Maximum
Individual $6,550 No change
Family $13,100 No change
HDHP Minimum Annual Deductible
Individual $1,300 No change
Family $2,600 No change
Employer Provided Adoption Assistance Programs $13,460 $13,570
Transportation Fringe Programs
Mass Transit Expenses $255/month No change
Parking Expenses $255/month No change

This article was last updated on October 27, 2016


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