2017 fringe benefit limits announced
No change in qualified retirement contributions
The IRS announced the 2017 inflation-adjusted limits that apply to certain employee fringe benefits, with at least one surprise to note. Unexpectedly, the limit on employee pretax contributions for qualified retirement plans such as 401(k) and 403(b) remain unchanged at $18,000, the same limit that applied in 2015 and 2016.
Other dollar limits on retirement benefits and contributions, such as the annual compensation limit under IRC Section 401(a)(17) were increased slightly. (IRS Notice 2016-82; Revenue Procedure 2016-55.)