IRS Retirement Plan Limits Remain the Same
When I see the foliage changing every fall, it always reminds me of the IRS’s annual update to the retirement plan limits. The IRS adjusted most of the relevant limits last year (please ignore the reference in last year’s article about the Bengals disappointing – not this season!). This year, there was almost no change by the IRS in these limits, and there are no changes to our annual retirement plan limit chart going into 2016.
|
2015 |
2016 |
|
| ELECTIVE DEFERRAL ANNUAL LIMITS | ||
| 401(k), 403(b) and SEPs | $18,000 | $18,000 |
| 457 Plans | $18,000 | $18,000 |
| SIMPLE IRAs and 401(k)s | $12,500 | $12,500 |
| CATCH-UP CONTRIBUTIONS | ||
| 401(k), 403(b) and SEPs | $6,000 | $6,000 |
| SIMPLE IRAs and 401(k)s | $3,000 | $3,000 |
| MAXIMUM ANNUAL PLAN | $265,000 | $265,000 |
| 415 ANNUAL ADDITIONS | ||
| Defined Benefit Plan Limit | $210,000 | $210,000 |
| Defined Contribution Plan Limit | $53,000 | $53,000 |
| HIGHLY COMPENSATED EMPLOYEE | $120,000 | $120,000 |
| KEY EMPLOYEE | ||
| Officers | $170,000 | $170,000 |
| 1% Owner | $150,000 | $150,000 |
| SOCIAL SECURITY TAXABLE WAGE BASE | $118,500 | $118,500 |