The IRS recently released its 2017 employee benefits limitations for retirement plans. The following chart lists common limitations relevant for many employers.
|401(k), 403(b), 457(b), Pension, etc.|
|Defined Contribution Limits||54,000||53,000||53,000|
|Defined Benefit Limits||215,000||210,000||210,000|
|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|
|Single or Head of Household||62,000||61,000||61,000|
|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 Maximum Contributions||$12,500||$12,500||$12,500|
|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|
|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.