On October 27, 2016, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017.
Highlights of Limitations That Remain Unchanged From 2016:
- The contribution limit for employees who participate in 401(k), 403(b) and most 457 plans remains unchanged at $18,000.
- The catch-up contribution limit for employees aged 50 and over who participate in 401(k) and 403(b) plans remains unchanged at $6,000.
- The limit on annual contributions to an IRA remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
The chart below summarizes the most common limits:
More detailed information regarding the 2017 pension plan limitations can be found on the IRS website.