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 |