On October 27, 2016, the IRS announced cost of living adjustments to the qualified plan dollar limits for 2017. Some of these limits did not increase for 2017 because the increase in the cost of living index did not meet the statutory thresholds that trigger an adjustment. Below is a summary of the adjustments to the limits generally relevant for most retirement plans.

• The elective deferral limit for 401(k), 403(b) and eligible 457(b) plans remains unchanged at $18,000.
• The catch-up contribution limit for those age 50 or older also remains unchanged at $6,000.
• The dollar limit on the annual benefit under a defined benefit plan is increased from $210,000 to $215,000.
• The dollar limit on annual allocations under a defined contribution plan is increased from $53,000 to $54,000.
• The annual compensation limit is increased from $265,000 to $270,000.
• The annual compensation limit for eligible participants in certain governmental plans that, as of July 1, 1993, allowed for cost of living adjustments to the annual compensation limit in effect at that time is increased from $395,000 to $400,000.
• The dollar threshold for highly compensated employee status used in performing various nondiscrimination tests did not increase and remains at $120,000.
• The dollar threshold for key employee status for officers used in performing the top heavy test is increased from $170,000 to $175,000.

It has also been announced that the Social Security wage base is increased from $118,500 to $127,200.