Cost of Living Adjustments for 2017 from Internal Revenue Service

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The Internal Revenue Service has announced the 2017 cost of living adjustments to various limits. The adjusted amounts generally apply for plan years beginning in 2017. Some of the adjusted amounts, however, apply to calendar year 2017.

Employee Benefit Plans

Plan Year 2017 2016
401(k), 403(b), 457 deferral limit $18,000 $18,000
Catch-up contribution limit (age 50 or older by end of 2016) $6,000 $6,000
Annual compensation limit $270,000 $265,000
Annual benefits payable under defined benefit plans $215,000 $210,000
Annual allocations to accounts in defined contribution plans $54,000

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(but not more than 100% of compensation)

$53,000

(but not more than 100% of compensation)

Highly compensated employee Compensation more than $120,000 in 2016 plan year Compensation more than $120,000 in 2015 plan year

 

Health Savings Accounts

Calendar Year 2017 2016
Maximum contribution

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  • Family
  • Self
  • $6,750
  • $3,400
  • $6,750
    $3,350
Catch-up contribution (participants who are 55 by end of year)
  • $1,000
  • $1,000
Minimum deductible

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  • Family
  • Self
  • $2,600
  • $1,300
  • $2,600
  • $1,300
Maximum out-of-pocket

  • Family
  • Self
  • $13,100
  • $6,550
  • $13,100
    $6,550

 

Social Security

Calendar Year 2017 2016
Taxable wage base $127,200 $118,500
Maximum earnings without loss of benefit  

 

 
  • Under full retirement age
  • $1,410/mo. ($16,920/yr.)
  • $1,310/mo. ($15,720/yr.)
  • Year you reach full retirement age
  • $3,740/mo. up to mo. of full retirement age ($44,880/yr.)
  • $3,490/mo. up to mo. of full retirement age ($41,880/yr.)

 

Social Security Retirement Age

Year of Birth Retirement Age
Prior to 1938 Age 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943 – 1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67

© 2016 Varnum LLP

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