Are you planning for your retirement but do not know about the current rates and limits? Well, this article will get you sorted in no time! Under the 401k plans, the contribution limit for employees have been mentioned according to the Federal Government’s Thrift Savings Plan. For 2017, the overall defined retirement plan contribution limits have been raised up to $54,000. According to government documentation, these plans are used to boost up small business employers or self-employed workers. Contribution limit retirement plans fall under given category such as 401k, 403b, and 457 plans. A well-maintained or qualified benefit plan is used to define future annual pensions. The maximum benefit earned as of 2017 is $215,000 of one’s earned income.
Contribution or defined benefits plan…401k is also mentioned as catch-up retirement plan contribution limit. It is mainly for those people aged 50 or above. If any employee does not turn 50 until December 31, 2017 then one can enjoy the additional benefits of $6,000 catch-up contribution for the year. A SIMPLE (Savings Incentive Match Plan for Employees) plan can also include the form of an IRA, i.e., the 401k plan. These retirement plan contribution limits will allow employees to make contributions up to $12,500 for 2017. If we talk about both 401k and 403b plans then it can be easily noticed that it includes authorized conversion or plan documents which can be easily categorized as an in-plan conversion.
Description with maximum contribution limit…There are different types of plans which are used to represent the contribution limit of every year. Thus, the 401k and 403b plans can easily explain the retirement plan contribution limits for every year. If we talk about 2017’s maximum contribution limit then according to SIMPLE plans it can be $12,500. The values of 2016 and 2017 are same in the case of maximum contribution limits and catch-up contributions for individuals aged 50 or above.