1997 Qualified Plan Limits
Most of the limits affecting qualified retirement plans are indexed to inflation,
subject to certain rounding rules. The key limits for 1997 are:
$9,500 |
Maximum employee pre-tax deferral in a 401(k) or 403(b) plan. (unchanged) |
$6,000 |
Employee deferral limit for SIMPLE plans (IRA and 401(k) versions) (new) |
$30,000 |
Annual addition limit for defined contribution plans. (unchanged) |
$160,000 |
Maximum compensation that can be considered in a qualified retirement plan. (Increased
by $10,000 from the $150,000 in 1994 thru 1996). |
$125,000 |
Maximum annual pension payable from a defined benefit plan at age 65 as a life only
annuity. Adjusted for early payment and other forms of annuity. The limit applies to 1997
retirements. (up $5,000) |
$160,000 |
Threshold for excess distributions tax. (up $5,000) |
$80,000 |
The dollar limit in the definition of "highly compensated employees" for
nondiscrimination testing. (rules changed for 1997 under Pension Simplification) |
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