The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016. All of the pension plan limitations will stay the same for 2016 because the cost-of-living index did not adjust significantly. The only adjustments were for the Roth IRA beginning income for phaseout, and maximum income thresholds.
Below are the details of the changed and unchanged limitations:
|401(k) elective deferral limit||$18,000||$18,000|
|403(b) tax-sheltered annuity limit (tax-exempt organizations)||$18,000||$18,000|
|457 deferred compensation limit (tax-exempt organizations)||$18,000||$18,000|
|Catch-up contributions for those age 50 and over||$6,000||$6,000|
|SIMPLE 401(k) and SIMPLE IRA catch-up contribution limit for those age 50 and over||$3,000||$3,000|
|Section 415 individual limit for defined benefit plans||$210,000||$210,000|
|Section 415 individual limit for defined contribution plans||$ 53,000||$ 53,000|
|Annual compensation limit for qualified plans||$265,000||$ 265,000|
|Dollar limit for “highly compensated employee”||$120,000||$120,000|
|Dollar limit for “key employee”||$170,000||$170,000|
|Compensation limit for SEP eligibility||$600||$600|
|Social Security wage base||$118,500||$118,500|
|IRA contribution total individual limit pre-tax and/or Roth||$5,500||$5,500|
|IRA catch-up limit for those age 50 and over||$1,000||$1,000|
|Roth IRA beginning trigger for phaseout – single||$116,000||$117,000|
|Roth IRA maximum income limit – single||$131,000||$132,000|
|Roth IRA beginning trigger for phaseout – married||$183,000||$ 184,000|
|Roth IRA maximum income limit – married||$ 193,000||$194,000|
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