The Internal Revenue Service creates annual limitations on contributions made to qualified retirement plans like Brethren Pension Plan. Here are the main types of contributions, and the limits for 2016 and 2017 —
Elective-deferral contributions — These are pre-tax contributions an employee makes to an employer-sponsored retirement plan such as a 401(k) or 403(b). (Code § 402(g))
| 2016 Limit: $18,000 | 2017 Limit: $18,000 |
Catch-up contributions — If you are 50 years old or older by the end of the calendar year, you may contribute additional funds to your Pension account beyond the elective-deferral contribution limit. (Code § 414(v))
| 2016 Limit: $6,000 | 2017 Limit: $6,000 |
Defined contribution plan contributions — The total annual contribution, including tax-deferred and tax-paid deposits, from both an employer and an employee. The limit is the lesser of the dollar figure below or 100 percent of your pay. (Code § 415(c))
| 2016 Limit: $53,000 | 2017 Limit: $54,000 |
Annual compensation limit — The maximum dollar amount that can be taken into consideration when calculating retirement benefit contributions. (Code § 401(a)(17))
| 2016 Limit: $265,000 | 20176 Limit: $270,000 |