iOn October 21, 2015, the Internal Revenue Service issued IR-2015-118, which applies cost of living adjustments (“COLAs”) to various limits applicable to qualified retirement plans and individual retirement accounts for the 2016 year. In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. Below is a comparison of selected limits for plan years 2014, 2015, and 2016.
|
|
2014 |
2015 |
2016 |
|
Annual compensation for plan purposes |
|
|
|
|
(for plan years beginning in calendar year) 401(a)(17) |
$260,000 |
$265,000 |
$265,000 |
|
Defined benefit plan |
|
|
|
|
(for limitation years ending in calendar year) 415(b) annual benefit limit |
$210,000 |
$210,000 |
$210,000 |
|
Defined contribution plan |
|
|
|
|
(for limitation years ending in calendar year) 415(c) 401(k) / 403(b), aggregate elective deferrals and employer contributions |
$52,000 |
$53,000 |
$53,000 |
|
(for taxable years beginning in calendar year) 402(g) 401(k) / 403(b), elective deferrals |
$17,500 |
$18,000 |
$18,000 |
|
(for taxable years beginning in calendar year) 457 aggregate elective deferrals and employer contributions |
$17,500 |
$18,000 |
$18,000 |
|
(for taxable years beginning in calendar year) 414(v) 401(k) / 403(b) / 457, catch-up deferrals at Age 50+ |
$5,500 |
$6,000 |
$6,000 |
|
SIMPLE plan |
|
|
|
|
(for calendar years) 408(p) elective deferrals |
$12,000 |
$12,500 |
$12,500 |
|
(for taxable years beginning in calendar year) 408(p) catch-up deferrals at Age 50+ |
$2,500 |
$3,000 |
$3,000 |
|
Individual Retirement Account |
|
|
|
|
(for calendar years) 408(a) contribution limit |
$5,500 |
$5,500 |
$5,500 |
|
(for calendar years) catch-up contribution at Age 50+ (not subject to COLAs) |
$1,000 |
$1,000 |
$1,000 |
|
FICA Wage Base |
$117,000 |
$118,500 |
$118,500 |
|
Highly Compensated Employee 414(q) |
$115,000 |
$120,000 |
$120,000 |
|
Key Employee Officer for top-heavy testing |
$170,000 |
$170,000 |
$170,000 |
|
ESOP 5-Year Distribution period 409(o)(1)(c)(ii) |
