IRS Retirement Plan Limits Remain the Same

Lyndsey R. Barnett

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