Plan Limits

401(k) PLANS/403(b) PLANS                                                                                        2017               2018

The calendar year limitation on elective deferrals under IRC §402(g)(1).             $18,000        $18,500

Catch-up contribution amount under IRC §414(v)(2)(B)(i) for participants               $6,000          $6,000

who are age 50 or older by the last day of the calendar year.

 

DEFINED CONTRIBUTION PLAN LIMITATION

The limitation for defined contribution plans (Profit Sharing,                                    $54,000       $55,000

401(k), Money Purchase) under IRC §415(c)(1)(A). This code

section limits the allocation of contribution (salary deferral, match,

employer contribution) to a participant to the lesser of 100%

of compensation or this amount. Catch-up contributions (see

above) may be made in addition to this amount.

 

HIGHLY COMPENSATED EMPLOYEE

Compensation for purposes of defining highly compensated                                     $120,000     $120,000

employees under IRC §414(q)(1)(B). A highly compensated

employee is as follows:

1) More than 5% owner (and family members under stock attribution rules)

2) Employee earning over the above amount in the prior plan year*

This means if you earn over $120,000 during the Plan Year beginning in

2016* then you will be considered a highly compensated employee for

the plan year beginning in 2017.

*and, if elected, are in the top 20% of employees, ranked by compensation

 

COMPENSATION LIMIT

The annual compensation limit under IRC §401(a)(17) and                                       $270,000   $275,000

l). This is the maximum compensation amount which can

be used for contribution allocations and discrimination testing.

 

KEY EMPLOYEE

Compensation for purposes of defining key employee under                                     $175,000    $175,000

RC §416(i)(1)(A)(i).