Tax-qualified retirement plans

• Defined benefit plan annual accrual limit – increased from $245,000 to $265,000.
• Defined contribution plan annual addition limit – increased from $61,000 to $66,000. 
• Elective deferrals annual limit – increased from $20,500 to $22,500. 
• Annual compensation limit – increased from $305,000 to $330,000. 
• Compensation threshold for top-heavy plan “key employee” status – increased from $200,000 to $215,000.
• Compensation threshold for “highly compensated employee” status – increased from $135,000 to $150,000. 
• Dollar limit for catch-up contributions for individuals aged 50 or over – increased from $6,500 to $7,500.
• Contribution limit for SIMPLE retirement accounts – increased from $14,000 to $15,500. 
• Annual Section 457(b) plan limit – increased from $20,500 to $22,500.

Traditional IRAs

• Annual maximum deductible amount for traditional IRA contributions – increased from $6,000 to $6,500. 
• Dollar amount for determining deductible amount of traditional IRA contributions 
  • For active participants in an employer retirement plan filing a joint return or as a qualifying widow(er) – increased from $109,000 to $116,000.
  • For all others who are active participants in an employer retirement plan (other than married taxpayers filing separate returns) – increased from $68,000 to $73,000.
  • If not an active participant in an employer retirement plan but spouse is – increased from $204,000 to $218,000. 
• Adjusted gross income phase-out range for determining deductible amount for traditional IRA contributions 
  • For single individuals and heads of household who are active participants in an employer retirement plan – increased from $68,000-$78,000 to $73,000-$83,000.
  • For married couples filing jointly where the spouse who makes the traditional IRA contribution is an active participant in an employer retirement plan – increased from $109,000-$129,000 to $116,000-$136,000. 
  • For traditional IRA contributions by an individual who is not an active participant in an employer retirement plan but whose spouse is – increased from $204,000-$214,000 to $218,000-$228,000. 

Roth IRAs

• Adjusted gross income limit for determining maximum Roth IRA contributions 
  • If married and filing jointly or if filing as a qualifying widow(er) – increased from $204,000 to $218,000. 
  • For all others (other than married taxpayers filing separate returns) – increased from $129,000 to $138,000. 
• Adjusted gross income phase-out range for contributions to a Roth IRA 
  • For married couples filing jointly – increased from $204,000-$214,000 to $218,000-$228,000. 
  • For singles and heads of household – increased from $129,000-$144,000 to $138,000-$153,000.

Contact

Dana Fried, JD, LLM, Managing Director, National Tax

516.417.5064

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