posted on November 17th 2016 in Austin CFP Team Posts with 0 Comments /

Attention business owners: your friendly neighborhood Certified Financial Planner™ professionals (CFP® professionals) in Dallas-Fort Worth, Austin, and Southern California want to remind you that 2017 is right around the corner. Here’s a peek at how deduction limits for Qualified Plans have either changed or remained constant for 2017.

  • What are the elective deferral limits for 401(k), 403(b) and 457 plans? The limit remains unchanged at $18,000. Remember the limit is combined for pre-tax and Roth deferrals. This excludes SIMPLE plans.
  • What catch-up contribution am I allowed in addition to the Elective Deferrals? The catch-up is unchanged at $6,000. You are eligible if you are age 50 or older before the end of the year.
  • What is the limit for SIMPLE plan elective deferrals? It is an unchanged of $12,500, which combines Roth and pre-tax deferrals.
  • What is the SIMPLE plan catch-up contribution limit? It is unchanged at $3,000.
  • What is the Social Security Taxable Wage Base? It has increased from $118,500 to $127,200
  • What is the limitation used to define a Highly Compensated Employee? It remains unchanged at $120,000.
  • What is the limitation used to define a Key Employee? It has increased from $170,000 to $175,000.
  • What is the Annual Compensation Limit under Sections 401(a)(17), 404(1)? This maximum amount of earned income that can be considered for plan purposes has increased from $265,000 to $270,000.
  • What is the limitation for Defined Contribution Plans 415(c)(1)(A)? It has increased from $53,000 to $54,000. This is a total aggregation contribution. It includes elective deferral (pre-tax or Roth) contributions as well as employer contributions and forfeitures.


If you’ve got contributions left to make for 2016, the clock is ticking, so get with your advisor before it’s too late!  

If you aren’t sure where to start, are considering a new plan for 2017, or simply would like your current plan reviewed, give me a call and our team will help you understand your options and set up a plan that’s right for you.

about the author: Joshua I. Wilson CMT

Josh-Wilson CMTJoshua I. Wilson, CMT®, AIF® is a partner and wealth manager who has managed over $2B for TD Ameritrade. Joshua led the national training and development program for all of TDA’s new advisors and managers, won a national coaching award. Joshua gave his graduation speech at Brown University. Joshua is a Chartered Market Technician® (CMT®) and a Accredited Investment Fiduciary® (AIF®).

Learn more and/or Contact Joshua

Continue Reading

Other articles filed under Austin CFP Team Posts

How Do We Compare to Austin’s Best Financial Planning Firms?

February 28, 2019 - Every year, the Austin Business Journal publishes its annual Book of Lists. This downloadable document or print book — both available for purchase — lists the “hottest area companies in their field” based on ranking criteria specified by field. In...
Continue Reading

2018 Year-End Investment Market Report

January 30, 2019 - This was the year the long, seemingly endless bull market came to a crashing halt — and U.S. investors finally, for the first time since 2008, experienced the normal definition of a bear market (down 20% from the S&P 500's...
Continue Reading

Picking Funds Based on Performance: A Fool’s Game

January 23, 2019 - You’ve probably heard from the do-it-yourselfer at your office. “I just invest in the funds with the best performance.” But is this a reasonable? Though a book could be written citing numerous academic studies to address the validity of this...
Continue Reading

What Attracted our Advisors to WorthPointe?

January 22, 2019 - Each of our advisors was drawn to something slightly different at WorthPointe. We take great satisfaction in giving our partners the career they dream of. Here are a few of their stories. Meet Morgan Advisor by day and surfer by...
Continue Reading

Here for You, Anywhere You Are

January 8, 2019 - Here at WorthPointe, we want to help you get the most out of life. We are constantly rethinking the traditional features of a wealth management firm and reworking them to better fit your busy lifestyle. This includes our online presence...
Continue Reading

Return to Blog Home