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Publications | January 9, 2017
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Key Benefit Plan Limits for 2017

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.