Broker Check

Annual Plan Limits

   2016 2017 2018 2019
Compensation $265,000$270,000$275,000$280,000
Limits on benefits and contributions:
 Defined contribution plans$53,000$54,000$55,000$56,000
 Defined benefit plans$210,000$215,000$220,000$225,000
 401(k), 403(b) and 457 plan elective deferrals$18,000$18,000$18,500$19,000
 SIMPLE plan elective deferrals$12,500$12,500$12,500$13,000
Catch-up contributions:
 401(k), 403(b) and 457 plans$6,000$6,000$6,000$6,000
 SIMPLE plans$3,000$3,000$3,000$3,000
“Highly Compensated” definition $120,000$120,000$120,000$125,000
“Key Employee” definition:
 1% owner$150,000$150,000$150,000$150,000
Social Security:
 Taxable wage base$118,500$127,200$128,400$132,900
 Social Security tax rate*6.20%6.20%6.20%6.20%
 Medicare tax rate1.45%1.45%1.45%1.45%
 Combined tax rate7.65%7.65%7.65%7.65%

* Beginning 2013, a medicare surtax of 0.9% applies to wages exceeding 250,000. There is a secondary surtax of 3.8% that may apply to unearned income for certain taxpayers as well.