The Internal Revenue Service today announced cost of living adjustments for pension plans and other retirement-related items for tax year 2017. Here's a brief outline of the changes:
- The maximum compensation for retirement plans is increased to $270,000.
- The Social Security taxable wage base is increased to $127,200.
- The contribution limit for 401(k)s will remain at $18,000.
- The catch-up contribution limit for employees over 50 will remain at $6,000.
- The IRA limit is unchanged and remains $5,500 with a catch-up contribution limit of $1,000.
- The Annual Additions limit for Defined Contribution plans is increased to $54,000.
A full outline of all of the changes is available at the IRS website.