The Internal Revenue Service has announced the cost‑of‑living adjustments (“COLA”) affecting pension plans and other retirement-related limitations for the 2017 tax year. Although many of the limits remain unchanged from 2016, some of the highlights include:
- The annual additions limit will increase from $53,000 to $54,000
- The annual benefit under a defined benefit plan will increase from $210,000 to $215,000
- The annual compensation limit will increase from $265,000 to $270,000
- The annual compensation limits for highly compensated and key employees will increase to $125,000 and $175,000 respectively
In a separate release, the Social Security Administration announced that the COLA will increase by 0.3% for people receiving Social Security and Supplemental Security Income, while the taxable wage base will increase from $118,500 to $127,200.
For additional information, see: 2017 IRS Pension Plan Limits
