On October 21, 2015, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016. In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds.
Chart of Select Limits |
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| 401k Plan Limits for Year | 2016 | 2015 | 2014 | 2013 | 2012 |
| 401k Elective Deferrals | $18,000 | $18,000 | $17,500 | $17,500 | $17,000 |
| Annual Defined Contribution Limit | $53,000 | $53,000 | $52,000 | $51,000 | $50,000 |
| Annual Compensation Limit | $265,000 | $265,000 | $260,000 | $255,000 | $250,000 |
| Catch-Up Contribution Limit | $6,000 | $6,000 | $5,500 | $5,500 | $5,500 |
| Highly Compensated Employees | $120,000 | $120,000 | $115,000 | $115,000 | $115,000 |
| Non-401k Related Limits | |||||
| 403(b)/457 Elective Deferrals | $18,000 | $18,000 | $17,500 | $17,500 | $17,000 |
| SIMPLE Employee Deferrals | $12,500 | $12,500 | $12,000 | $12,000 | $11,500 |
| SIMPLE Catch-Up Deferral | $3,000 | $3,000 | $2,500 | $2,500 | $2,500 |
| SEP Minimum Compensation | $600 | $600 | $550 | $550 | $550 |
| SEP Annual Compensation Limit | $265,000 | $265,000 | $260,000 | $255,000 | $250,000 |
| Social Security Wage Base | $118,500 | $118,500 | $117,000 | $113,700 | $110,100 |
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. ©2017 |
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