LIKE WHAT YOU READ? Share this article : IRS Announces 2016 Retirement Plan Contribution Limitations December 21, 2015 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. Most of the limits were unchanged because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. The following table is provided to help you determine how much to set aside for retirement planning in 2016. Tax Year 2016 2015 IRA Contribution Limit – 219 (b) (5) (A) – Under Age 50 $5,500 $5,500 IRA Catch-Up Contribution Limit – 219 (b) (5) (B) – Age 50 or Over $1,000 $1,000 SIMPLE IRA Maximum Contributions – 408(p)(2)(E) – Under Age 50 $12,500 $12,500 SIMPLE IRA Maximum Catch-Up Contribution – 414 (v) (2) (B) (ii) – Age 50 or Over $3,000 $3,000 401 (k) and 403(b) Maximum Contributions $18,000 $18,000 401 (k) and 403(b) Maximum Catch-Up Contribution – Age 50 or Over $6,000 $6,000 Coverdell ESA Contribution Limit $2,000 $2,000 Employer Defined Contribution Limit – 415 (c) (1) (A) $53,000 $53,000 Elective Deferral Limit – 402(g) (1) $18,000 $18,000 Elective Deferral Catch-Up Limit – 414 (v) (2) (B) (i) $6,000 $6,000 Annual Compensation Cap – 401(a) (17)/404 (I) $265,000 $265,000 SEP Minimum Compensation – 408 (k) (2) (C) $600 $600 SEP Maximum Compensation – 408 (k) (3) (C) $265,000 $265,000 457 Elective Deferrals – 457(e) (15) $18,000 $18,000 Defined Benefit Limit – 415 (b) (1) (A) $210,000 $210,000 Highly Compensated Employee (HCE) – 414 (q) (1) (B) $120,000 $120,000 Key Employee – 416 (i) (1) (A) (i) $170,000 $170,000 Taxable Wage Base $118,500 $118,500 Back to Articles
