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.
|Elective Deferrals (401k & 403b plans)||$18,000||$18,000|
|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.