The IRS has recently published the new 401(k) contribution limits that will be effective in 2017. The general contribution limit will remain at $18,000 (combined for pre-tax and Roth). In addition, employees age 50 or older as of December 31, 2017 are able to contribute an extra $6,000 (same as 2016) by making a separate catch-up contribution election.
The maximum annual total 401(k) contribution in 2017, including all employee contributions and employer matching and service based contributions (excluding catch-up contributions) will increase from $53,000 in 2016 to $54,000 in 2017. The employee compensation that is eligible to be considered in calculating contributions to defined contribution plans will increase from $265,000 in 2016 to $270,000 in 2017.
Employees who want to make changes to their 401(k) plan elections must make those changes with Fidelity during the period necessary to meet payroll deadlines for the pay period:
To make changes for the last paycheck of 2016 for bi-weekly paid employees you must complete the election with Fidelity between December 9 and December 22 by 1 p.m. Pacific Time. For weekly paid employees to make changes for the last paycheck of 2016 the election must be made between December 16 and December 22 by 1pm.
To make changes for the first paycheck of 2017 for bi-weekly paid employees you must complete the election with Fidelity between December 23 and January 5 by 1 p.m. Pacific Time. For weekly paid employees to make changes for the first paycheck of 2017 the election must be made between December 23 and December 29 by 1 p.m. Pacific Time.
Year-to-date total contribution amounts are shown on employee paychecks, available on LAPIS self-serve. Current 401(k) plan elections can be found by contacting Fidelity.
To change your 401(k) plan contribution elections contact Fidelity at 1-800-835-5095 or www.netbenefits.com.