On October 27, 2016, the Internal Revenue Service (“IRS”) announced the cost-of-living adjustments (“COLA”) for the 2017 tax year. These COLA rates are used to adjust over 40 tax provisions from the standard deduction and personal exemption to retirement plan limits. Based on changes in the consumer price index, used by the IRS to determine the COLA rates, which was less than the statutory threshold to trigger increases, there are no increases in the 2017 limits.
See the tables below, for a comparison of the 2017 and 2016 retirement plan limits:
For more information, click here.
Kevin C. Bach, CPA, CVA