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.
Other articles filed under Austin CFP Team Posts
July 13, 2018 - Are there many important things to be done when a parent is declining in health that you don’t read about too often? Most definitely — and I’d like to share some lessons learned that might help those of you who...
May 23, 2018 - Investing seems like it should be straightforward: buy when stock is low, sell when its high. Reap the profit. Makes sense especially when you consider the big gains demonstrated by the stock market over the past couple of years. Big...
April 17, 2018 - People want a sense of security — emotionally, physically and financially. The truth of life is that we try to manage a tightrope walk between chaos and order. If somehow we can incrementally achieve some order in a life that...
February 22, 2018 - [embed]https://www.youtube.com/watch?v=f6BWDxM2edc[/embed] WorthPointe works on your schedule. Austin Financial Advisor Morgan Smith explains how he uses his tech tools to meets clients where they’re at, even if they’re laying on a beach in Bali.
February 13, 2018 - As a financial planner, I’ve certainly been getting my share of questions about the recently passed tax reform. In this article, I’ll address some of the most common concerns I’m hearing from clients, but how the changes in the tax...
- What are Options & How Risky Are They?
- Is It Smart to Invest in Cryptocurrency?