IRS Announces Retirement Plan Limits for 2016

October 22, 2015

IRS has recently announced the cost of living adjustments affecting retirement plan limits for the 2016 year.  The relevant limits to employer sponsors qualified plans are unchanged from 2015.  A summary chart of the limits over the past 3 years is below:

 

Item 2016 2015 2014
Maximum Compensation  $      265,000  $      265,000  $      260,000
Social Security Taxable Wage Base  $      118,500  $      118,500  $      117,000
Elective Deferrals  $        18,000  $        18,000  $        17,500
Catch Up Contributions  $          6,000  $          6,000  $          5,500
415 limits (maximum in a defined contribution plan)  $        53,000  $        53,000  $        52,000
Annual limit for defined benefit plan  $      210,000  $      210,000  $      210,000
Key Employee compensation limit  $      170,000  $      170,000  $      170,000
Highly Compensated Employee compensation  $       120,000  $       120,000  $       115,000