Benefit Flash

2017 Annual Benefit Plan Amounts

December 9, 2016 - 9:08 am
Contribution & Benefit Limits 2016 Limit 2017 Limit
Section 401(k), 403(b), or 457(b) annual deferral $18,000 $18,000
SIMPLE plan annual deferral $12,500 $12,500
Section 415 maximums
  • Annual benefit from defined
$210,000 $210,000
benefit plan
  • Annual additions to defined contribution plan
$53,000 $54,000
Maximum IRA contribution $5,500 $5,500
Catch-up contribution limits
  • Retirement plan
$6,000 $6,000
  • SIMPLE plan
$3,000 $3,000
  • IRA
$1,000 $1,000
Compensation Amounts
Annual compensation limit $265,000 $265,000
Grandfathered governmental plan participants $395,000 $395,000
Highly compensated employees
  •  any employee*
$120,000** $120,000**
  •  5 percent owner
no minimum no minimum
  • Employer may elect to limit to top-paid 20%
** Due to the look-back rule, applies in determining HCEs during following year
Key employees
  •  officer
$170,000 $175,000
  •  1 percent owner
$150,000 $150,000
  • 5 percent owner
no minimum no minimum
Small Employer Health Insurance Credit Average Wage Phase-Out $25,900 $25,900

 

Social Security/Medicare 2016 Limit 2017 Limit
  •  OASDI taxable wage base
$118,500 $127,200
  •  OASDI tax rate – employer
6.20% 6.20%
  •  OASDI tax rate – employee
6.20% 6.20%
  •  Medicare tax rate – employer
1.45% 1.45%
  •  Medicare tax rate – employee
1.45%>  1.45%>
Maximum income without reducing Social Security retirement benefits
  •  SSRA* or over
no limit no limit
  •  year individual attains SSRA*
$41,880/yr.^ $41,880/yr.^
  •  under SSRA*
$15,720/yr. $16,920/yr.
> Employer must withhold additional 0.9% from compensation in excess of $200,000.
* Social Security Retirement Age (age at which an individual may receive an unreduced monthly benefit).
^ No limit on earnings beginning the month an individual attains SSRA.
Health Plan Limits
Maximum Health FSA
  •  employee deferral
$2,550 $2,600
  •  carryover
$500 $500
Maximum HSA contribution
  •  individual
$3,350 $3,400
  •  family
$6,750 $6,750
  •  catch-up
$1,000 $1,000
Minimum HDHP deductible
  •  individual
$1,300 $1,300
  •  family
$2,600 $2,600
Maximum HDHP out-of-pocket
  •  individual
$6,550 $6,550
  •  family
$13,100 $13,100
Maximum out-of-pocket (non-grandfathered plans)
  •  individual
$6,850 $7,150
  •  family
$13,700 $14,300
Transitional Reinsurance Fee (per person) $27/yr. Only paid through the 2016 plan year
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