Quick Tip:

What are the annual retirement plan limits?

  2017 2016
     
Compensation $ 270,000 $ 265,000
     
Limits on benefits and contributions:    
     
Defined contribution plans 54,000 53,000
     
Defined benefit plans 215,000 210,000
     
401(k), 403(b), and 457 plan elective deferrals 18,000 18,000
     
SIMPLE plan elective deferrals 12,500 12,500
     
IRA 5,500 5,500
     
     
Catch-up contributions:    
     
401(k), 403(b), 457 plans 6,000 6,000
     
SIMPLE plans 3,000 3,000
     
IRA 1,000 1,000
     
     
"Highly Compensated" definition 120,000 120,000
     
     
"Key Employee" definition:    
     
Officer 175,000 170,000
     
1% owner 175,000 170,000
     
     
Social Security:    
     
Taxable wage base 127,200 118,500
     
Social Security tax rate 6.20% 6.20%
     
Medicare tax rate 1.45% 1.45%
     
Combined tax rate 7.65% 7.65%
     
Medicare surtax on wages > $200,000 0.90% 0.90%