IRS Announces 2016 Retirement Plan Limits
What’s new in 2016? Not much.
Each year, the IRS looks at the increase in the cost-of-living, and determines whether adjustments to the retirement plan limits are warranted. For 2016, all limits remain the same as 2015. The IRS determined that the cost-of living did not increase significantly enough to increase retirement plan limits.
2015 and 2016 Retirement Plan Limits
| Retirement Plan Type | Maximum Contribution Amount |
| Salary Deferral Limit | $18,000 |
| Catch-up Contribution for 401(a), 403(b) and 457 plans | $6,000 |
| SIMPLE Salary Deferral Limit | $12,500 |
| SIMPLE Catch-up Contribution | $3,000 |
| 457(b) Deferral Limit | $18,000 |
| Maximum Defined Contribution Annual Addition | $53,000 |
| Highly Compensated Employee Compensation Threshold | $120,000 |
| Maximum Compensation for Benefits and Allocations | $265,000 |
| Maximum Defined Benefit Plan Benefit | $210,000 |
| Key Employee: Officer Compensation | $170,000 |
| Key Employee: 1% Owner Compensation | $150,000 |
| IRA Contribution Limit | $5,500 |
| IRA Catch-up Contribution | $1,000 |
| SEP Compensation Threshold | $600 |
| Social Security Taxable Wage Base | $118,500 |
For a more complete listing of limitations that apply to retirement plans, click here to see the IRS form.
For more information, contact your Retirement Plan Advisor at Aldrich.
