Qualified Plan Limits

 
2017
2016
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)
$18,000
$18,000
457(b)(2) and 457(c)(1) Limits (not including catch-ups)
$18,000
$18,000
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), or SEP Plans
$6,000
$6,000
Limitation on annual benefits under Defined Benefit Plans under Sec. 415(b)(1)(A)
$215,000
$210,000
Limitation for Defined Contribution Plans under Sec. 415(c)(1)(A)
$54,000
$53,000
Annual Compensation Limit under Sections 401(a)(17), 404(l), 408(k)(3)(C)
$270,000
$265,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993
$400,000
$395,000
Highly Compensated Employee under Sec. 414(q)(1)(B)
$125,000
$120,000
Limitation under Sec. 408(p)(2)(E) regarding SIMPLE Retirement Accounts
$12,500
$12,500
Minimum compensation required to be eligible for SEP IRA
$600
$600
Maximum compensation that can be considered for SEP IRA
$270,000
$265,000
Dollar amount under Sec. 409(0)(1)(C)(ii) for determining the maximum account balance in an ESOP
$1,080,000
$1,070,000
Dollar amount used to determine the Lengthening of 5-Year ESOP Period
$215,000
$210,000
Income Subject to Social Security Tax
$127,200
$118,500
Social Security Tax for employees
6.20%
6.20%
Social Security Tax for self-employed workers
12.40%
12.40%
Medicare tax for employees and employers on earnings up to $200,000 ($250,000 if filing jointly)
1.45%
1.45%
Medicare tax for self-employed workers’ earnings up to $200,000 ($250,000 if filing jointly)
2.90%
2.90%
Additional Medicare tax for employees and/or self-employed workers on earnings in excess of $200,000 ($250,000 if filing jointly)
0.90%
0.90%
FICA Tax for employees and employers
7.65%
7.65%
FICA Tax for self-employed workers
15.30%
15.30%
The information presented here is not intended to be a comprehensive analysis. Cherry Bekaert Benefits Consulting is a benefits advisory firm and does not provide tax or legal advice. Individuals or Employers should consult with qualified legal and/or tax counsel for guidance in respect of matters of law, tax, and related regulation.

Cherry Bekaert Benefits Consulting, LLC is a Chernoff Diamond Affiliate. Chernoff Diamond & Co., LLC is a Managing Member of Cherry Bekaert Benefits Consulting. Chernoff Diamond & Co., LLC offers Investment Advisory Services through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. Chernoff Diamond & Co., LLC is independently owned and operated. Chernoff Diamond & Co., LLC, is a member of M Financial Group. Please visit mfin.com/DisclosureStatement.htm for further details involving this relationship.

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