October 27, 2016

IRS Announces Cost of Living Adjustments for 2017

IRC Section 415 requires that plan limits be adjusted annually for cost-of-living increases. These adjustments are calculated and released by the Internal Revenue Service (IRS) each year. Yesterday, the IRS announced the tax year 2017 annual inflation adjustments. A few notable changes for 2017 include increases to Defined Contribution and Defined Benefit plans, Social Security taxable wage base, maximum monthly social security allotments, and FSA maximum deferrals. 

A detailed listing of the 2017 limits is provided below: 

Download the complete list of 2017 limitations for benefit plans (PDF).