In October 2015, the IRS announced the cost of living adjustments for pension plan limits for 2016. In general, the limits will not change for 2016.
Listed below are some of the limits:
- The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Saving Plan will remain at $18,000.
- The catch-up contribution limit for employees ages 50 and over remains at $6,000.
- The AGI (adjusted gross income) limits for the saver’s credit (also known as the retirement savings contribution credit) for low and moderate income workers have increased:
- $61,500 for married couples filing jointly (up from $61,000 in 2015)
- $46,125 for head of household (up from $45,750)
- $30,750 for singles and married individuals filing separately (up from $30,500)
| Plan Limits for Plan Year 2016 | 2016 | 2015 |
| 401(k) Elective Deferrals | $18,000 | $18,000 |
| 403(b)/457 Elective Deferrals | $18,000 | $18,000 |
| Annual Defined Contribution Limit | $53,000 | $53,000 |
| Annual Compensation Limit | $265,000 | $265,000 |
| Catch-Up Contribution Limit | $6,000 | $6,000 |
