IRS Publishes New Pension Plan Limitations for 2016

The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2016.

In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not met the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did met the statutory thresholds.

Contribution/Benefit Limits 2016 2015
Elective Deferrals (401k & 403b plans) $18,000 $18,000
Catch-Up Contributions $6,000 $6,000
Annual Contribution Limit $53,000 $53,000
Annual Compensation Limit $265,000 $265,000
457(b) Deferral Limit $18,000 $18,000
Highly Compensated Threshold $120,000 $120,000
Income Subject to Social Security $118,500 $118,500
Top-Heavy Plan Key Employee Comp $170,000 $170,000
DB Plan Annual Benefit Limit $210,000 $210,000

As published by the Internal Revenue Service.

For full details on the pension plan limitations for 2016 click here.

For more information contact our team.

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