Each year, the IRS sets limits for pension plans. These limits are reviewed annually and adjusted for inflation. Here are some of the 2017 pension limits:
- Maximum compensation for plan purposes is $270,000
- Maximum monthly benefit for defined benefit plans ages 62 to 65 is the lesser of 100% of compensation or $17,916 with an annual benefit $215,000
- Highly Compensated Employee compensation $120,000+
- Maximum Defined Contribution / Profit Sharing contribution $54,000
- Maximum SEP contribution $54,000
- Maximum 401(k) contribution $18,000. Catch-up contribution for age 50 and over $6,000
- Maximum SIMPLE contribution $12,500
