On October 21, 2015, the IRS announced the 2016 dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines. The retirement plan limitations generally will not change for 2016 because of the growth in the cost-of-living index did not meet the required statutory thresholds to trigger any increases. The calendar year limit for elective deferrals to 401(k) and 403(b) plans will remain at $18,000, and the calendar year limit for catch-up contributions for individuals age 50 or over also will remain at $6,000. The Social Security Administration also recently announced that the Social Security wage base will remain at $118,500 for 2016.
Listed below are the principal limits applicable for 2016 and 2015.
|
Limit
|
2016
|
2015
|
|
Compensation Limit
|
$265,000
|
$265,000
|
|
Elective Deferrals (401(k), 403(b), 457(b))
|
$18,000
|
$18,000
|
|
Catch-up Contributions
|
$6,000
|
$6,000
|
|
Defined Contribution Plan 415 Limit
|
$53,000
|
$53,000
|
|
Defined Benefit Plan 415 Limit
|
$210,000
|
$210,000
|
|
Highly Compensated Employee
|
$120,000
|
$120,000
|
|
Social Security Wage Base
|
$118,500
|
$118,500
|
|
SIMPLE Plan Limit
|
$12,500
|
$12,500
|
|
SIMPLE Catch-up Contributions
|
$3,000
|
$3,000
|
