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Written by:

Marcia S. Wagner, Esq.

Stephen J. Miguasky, Esq.

Livia Quan Aber, Esq.


Published by

The National Underwriter Company/ALM


The premier resource guiding professionals through the new requirements established by the DOL's significant new rule.


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The Wagner Law Group

The Wagner Law Group, A Professional Corporation, is a nationally recognized ERISA and employee benefits, estate planning, employment, labor and human resources and real estate practice. 


Now celebrating its 20th anniversary, The Wagner Law Group has 25 attorneys with offices in Boston, Palm Beach Gardens, Tampa, St. Louis and San Francisco. Six of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.    







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The Wagner Law Group


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Tel: (617) 357-5200 

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St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
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St. Louis, MO  63102 









October 27, 2016


ERISA & Employee Benefits

Law Alert











Today, the Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2017, as detailed in Notice 2016-62.   


The following chart details the 2017 retirement plan dollar limitation cost-of living adjustments:  



Limitation Description






Maximum annual benefit under a defined benefit plan under IRC Section 415(b)(1)(A)










Maximum annual contribution to an individual's defined contribution plan account under IRC Section 415(c)










Maximum amount of annual compensation that may be taken into account for determining benefits or contributions to retirement plans under IRC Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii)


















Wage Base For Social Security Tax






Amount of compensation to be a "key" employee





Dollar amount for determining maximum account balance in an employee stock ownership plan subject to a 5-year distribution period under IRC Section 409(o)(1)(C)(ii)












Dollar amount used for determining the lengthening of the 5-year distribution period in an employee stock ownership plan under IRC Section 409(o)(1)(C)(ii)





Notably, the following limits remain unadjusted for 2017:


·  The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan remains $18,000.

·  The catch-up contribution limit for employees who are age 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan remains unchanged at $6,000.

·  The limit on annual contributions to an IRA remains unadjusted at $5,500 and the additional catch-up contribution limit for individuals age 50 and over remains $1,000.

·  The limitation used in the definition of "highly compensated employee" under IRC Section 414(q)(1)(B) remains unchanged at $120,000.

·  The minimum compensation amount under IRC Section 408(k)(2)(C) for simplified employee pensions (SEPs) remains $600.

·  The limitation under IRC Section 408(p)(2)(E) for salary deferral contributions to SIMPLE retirement accounts remains unadjusted at $12,500.

·  The limitation under Section 664(g)(7) concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan remains $45,000.




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This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.