!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> AFC Pensions : Qualified Retirement Plan Design, Consultation and Administration : Qualified Plan Annual Limitations
 
 
   Qualified Retirement Plan Design, Consultation & Administration
AFC Boston Skyline


Qualified Plan Annual Limitations

  2017 2016 2015
Compensation: $270,000 $265,000 $265,000
Benefit and Contribution Limits:      
  –  Defined Contribution Plans (1) $54,000 $53,000 $53,000
  –  Defined Benefit Plans (2) $215,000 $210,000 $210,000
  –  401(k), 403(b) and 457 plan deferrals $18,000 $18,000 $18,000
  –  SIMPLE plan deferrals $12,500 $12,500 $12,500
  –  IRA contributions $5,500 $5,500 $5,500
       
Catch-up contributions (3):      
  –  401(k), 403(b) and 457 plan deferrals $6,000 $6,000 $6,000
  –  SIMPLE plan deferrals $3,000 $3,000 $3,000
  –  IRA contributions $1,000 $1,000 $1,000
       
"Highly Compensated" definition (4) $120,000 $120,000 $120,000
       
"Key Employee" Definition:      
  –  Officer $175,000 $170,000 $170,000
  –  1% Owner $175,000 $170,000 $170,000
       
Social Security::      
  –  Taxable Wage Base $127,200 $118,500 $118,500
  –  Social Security (FICA) tax rate 6.20% 6.20% 6.20%
  –  Medicare tax rate 1.45% 1.45% 1.45%
  –  Combines tax rate 7.65% 7.65% 7.65%
Notes:

(1) - If non-calendar plan year, limitation for year in which plan year ends is in effect (eg, plan year ends January 31, 2017, then can use the 2017 limitation of $54,000.)

(2) - Amount represents maximum annual benefit payable as a straight life annuity at a Normal Retirement Age between 62 and 65; if payment commences earlier than 62 amount is actuarially reduced; if payment commences after 65 amount is actuarially increased.

(3) - Available to participants who attain or have attained age 50 by the end of the calendar year in question.

(4) - Highly Compensated is determined based upon compensation paid in prior year. Limitations shown apply to specific plan year, not testing year (eg, if determining whether participant is Highly Compensated for 2017, would use compensation paid in prior 2016 year and 2016 dollar amount.)
     


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