South Dakota
Retirement System
Proudly Serving South Dakota's Public Employees Since 1974
Employer
Contribution
Reporting

MySDRS

IRS Code Section 415 Maximum Limits For Benefits

Your SDRS retirement benefit may be limited by Federal law. IRS Code Section 415 imposes a maximum monthly benefit amount.

Your SDRS Personal Benefits Statement will contain an IRS Section 415 statement if it is determined that your projected SDRS retirement benefit may exceed the maximum cap. These benefit caps are based on IRS regulations and are outside the power of SDRS to change. You are urged to consider them in your long-term retirement planning.

Monthly Benefit Maximums for 2017
Age Monthly Maximum
55 $11,139.11
56 $11,892.08
57 $12,704.86
58 $13,584.30
59 $14,537.34
60 $15,571.91
61 $16,695.94
62-65 $17,916.67

 

IRS Code Section 401(a)(17) Maximum Limits For Compensation

IRS Code Section 401(a)(17) provides for annual compensation limitations for members who participate in defined benefit plans, such as SDRS. The compensation limit applies to all members who joined SDRS on and after July 1, 1996. The compensation limit affects the contributions you make to SDRS and limits the final average compensation (FAC) used in your retirement benefit calculation(s).

You may receive a letter from SDRS along with your SDRS Personal Benefits Statement if it has been determined that your current and/or projected compensation may exceed the maximum amounts. These compensation caps are based on IRS regulations and are outside the power of SDRS to change. You are urged to consider them in your long-term retirement planning.

Annual Compensation Limits
Year Amount
2017 $270,000
2016 $265,000
2015 $265,000
2014 $260,000
2013 $255,000
2012 $250,000
2011 $245,000
2010 $245,000
2009 $245,000
2008 $230,000
2007 $225,000
2006 $220,000
2005 $210,000
2004 $205,000
2003 $200,000
2002 $200,000
2001 $170,000
2000 $170,000
1999 $160,000
1998 $160,000
1997 $160,000
1996 $150,000