View Page As PDF
Share Button
Tweet Button
On Oct. 21, 2015, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2016 tax year. The limits are based upon the Social Security cost-of-living increases. For the third time in the last 40 years (all three having occurred in the last six years) there will be no cost of living adjustment increase. As such, while some applicable IRS limits will be rising in 2016, all of the following retirement plan limitations will remain the same as those in place for the 2015 tax year.

 2016 Retirement Plan Limits

2015

2016

 401(k),403(b) and 457(b) Deferral Limits     

$18,000

$18,000

 401(k) and 403(b) Catch-up Deferral Limits 

$6,000

$6,000

 Annual Limitation on Compensation            

$265,000

 $265,000

 Defined Contribution Limitation                     

$53,000

$53,000

 Defined Benefit Limitation                               

   $210,000

$210,000

 Highly Compensated Employee Compensation Threshold    

$120,000

$120,000

 Key Employee Compensation - Officer Threshold

$170,000

$170,000

 SIMPLE Deduction

$12,500

$12,500

 SIMPLE Catch-Up Contribution

$3,000

$3,000

 IRA Contribution Limit

$5,500

$5,500

 IRA Catch-Up Contribution Limit

$1,000

$1,000

 Social Security Wage Base

$118,500

$118,500


For more information, please contact one of the attorneys listed below.

COMMENT
+