Attention business owners: your friendly neighborhood Certified Financial Planner™ professionals (CFP® professionals) in Dallas-Fort Worth, Austin, and Southern California want to remind you that 2017 is right around the corner. Here’s a peek at how deduction limits for Qualified Plans have either changed or remained constant for 2017.

• What are the elective deferral limits for 401(k), 403(b) and 457 plans? The limit remains unchanged at $18,000. Remember the limit is combined for pre-tax and Roth deferrals. This excludes SIMPLE plans.

• What catch-up contribution am I allowed in addition to the Elective Deferrals? The catch-up is unchanged at $6,000. You are eligible if you are age 50 or older before the end of the year.

• What is the limit for SIMPLE plan elective deferrals? It is an unchanged of $12,500, which combines Roth and pre-tax deferrals.

• What is the SIMPLE plan catch-up contribution limit? It is unchanged at $3,000.

• What is the Social Security Taxable Wage Base? It has increased from $118,500 to $127,200

• What is the limitation used to define a Highly Compensated Employee? It remains unchanged at $120,000.

• What is the limitation used to define a Key Employee? It has increased from $170,000 to $175,000.

• What is the Annual Compensation Limit under Sections 401(a)(17), 404(1)? This maximum amount of earned income that can be considered for plan purposes has increased from $265,000 to $270,000.

• What is the limitation for Defined Contribution Plans 415(c)(1)(A)? It has increased from $53,000 to $54,000. This is a total aggregation contribution. It includes elective deferral (pre-tax or Roth) contributions as well as employer contributions and forfeitures.

Source: irs.gov

If you’ve got contributions left to make for 2016, the clock is ticking, so get with your advisor before it’s too late!  

If you aren’t sure where to start, are considering a new plan for 2017, or simply would like your current plan reviewed, give me a call and our team will help you understand your options and set up a plan that’s right for you.