Federal Estate & Gift Tax:
The
Federal estate tax exemption amount will be $5,490,000 in 2017.
The annual gift exclusion amount will remain at $14,000
Qualified Plans for 2017:
The limit on the maximum amount of elective contributions that a person may make to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan remains unchanged at $18,000.
The limit on “catch-up contributions” to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan for persons age 50 and older remains unchanged at $6,000.
The dollar limit on the maximum permissible allocation under a defined contribution plan is increased from $53,000 to $54,000.
The maximum annual benefit under a defined benefit plan is increased from $210,000 to $215,000.
The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan will go from $265,000 to $270,000.
The dollar amount used to identify “highly compensated employees” remains unchanged at $120,000.
Social Security Tax:
The Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $127,200 for 2017, which is an increase from the 2016 limit of $118,500.
