The IRS released its cost-of-living adjustments for retirement and pension plans. Here are the changes that matter:
- 401(k), 403(b) and 457 plan deferrals: The maximum annual contribution an employee can make through salary deferral is now $17,000 (up from $16,500 last year).
- Max contributions: The defined-contribution plan annual max is now $50,000 (up from $49K).
- Max pension benefits: The limit under a defined-benefit plan is $200,000 (up from $195K).
- Catch-up contributions: The limit for workers 50 and older remains $5,500.
Also: The earnings threshold for a highly compensated employee is now $115K (up from $110K) and the amount of employee compensation that can be considered in calculating pension benefits and compensation is $250K (up from $245K).