The Internal Revenue Service has released the 2016 cost of living adjustments affecting dollar limits on benefits and contributions under qualified retirement plans and health savings accounts, which are largely unchanged from the 2015 numbers. https://www.irs.gov/pub/irs-news/IR-15-118.pdf. The following chart summarizes the 2016 retirement plan limits and other benefit plan limits. The 2015 limits are provided for reference purposes.
|
|
2015 |
2016 |
|
Elective Deferral Limit 401(k), 403(b), 457(b) |
$18,000 |
$18,000 |
|
Catch-up Limit (age 50+) |
$6,000 |
$6,000 |
|
Defined Benefit Limit |
$210,000 |
$210,000 |
|
Defined Contribution Limit |
$53,000 |
$53,000 |
|
Dollar Limit – Highly Compensated Employees |
$120,000 |
$120,000 |
|
Officer-Key Employee |
$170,000 |
$170,000 |
|
Annual Compensation Limit |
$265,000 |
$265,000 |
|
SEP Eligibility Compensation Limit |
$600 |
$600 |
|
SIMPLE Deferral Limit |
$12,500 |
$12,500 |
|
SIMPLE Catch-up Limit (age 50+) |
$3,000 |
$3,000 |
|
Social Security Taxable Wage Base |
$118,500 |
$118,500 |
|
ESOP 5 Year Distribution Extension |
|
|
|
Account Minimum |
$1,070,000 |
$1,070,000 |
|
Additional amount for 1 year extension |
$210,000 |
$210,000 |
|
HSA (self/family) |
|
|
|
Maximum Annual Contribution |
$3,350/$6,650 |
$3,350/$6,750 |
|
HDHP minimum deductible limits |
$1,300/$2,600 |
$1,300/$2,600 |
|
Out-of-pocket expense annual maximum |
$6,450/$12,900 |
$6,550/$13,100 |
