By Courtney S. Barrack, CPA, Business Assurance & Advisory Services Manager | ERISA Team Leader
The IRS announced on October 27, 2016 the cost-of-living adjustments for dollar limitations on benefits and contributions under qualified retirement plans for tax year 2017. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
Some pension limitations, such as elective deferral contributions ($18,000) and catch-up contributions ($6,000) for 401(k), 403(b), and most 457 plans, will remain unchanged from 2016. The cost-of-living increase did not meet the statutory thresholds that trigger their adjustment.
The limits and thresholds are published on the IRS website.
For additional information related to these changes or any other questions regarding plan qualification, please contact any member of the Keiter team of employee benefit plan specialists or Email | 804.747.0000.
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Courtney is focused on sharing her knowledge of benefit plans with her clients’ Finance and Human Resource management teams. Her full-time ERISA specialization allows her to partner with Plan administrators and provide assistance throughout the year on benefit plan accounting and auditing concerns, new ERISA requirements, and ERISA regulation changes.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.