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2016 Retirement Plan Limits

Tuesday, November 3, 2015

2016 Retirement Plan Limits

 

On Thursday, October 23rd, the IRS announced the retirement plan limits that will be in effect for 2016. The 2016 limits are listed below. Please note that the 2016 limits are the same as the limits that apply for 2015.

  •  The salary deferral contribution limit remains unchanged at $18,000 in 2016.
  •  The catch-up contribution limit for employees age 50 and older remains unchanged at $6,000 in 2016
  •  The maximum annual plan contribution limit (employee + employer contributions) remains unchanged at $53,000 in 2016.
  •  The plan compensation limit remains unchanged at $265,000 in 2016.
  •  The Highly Compensated Employee (HCE) compensation limit remains unchanged at $120,000 in 2016.
  •  The Key Employee compensation limit for company officers remains unchanged at $170,000 in 2016
  •  The Key Employee compensation limit for 1% owners of the plan sponsor remains unchanged at $150,000 in 2016
  •  The Social Security Taxable Wage Base remains unchanged at $118,500 in 2016.
  •  The maximum deductible employer contribution limit (as a percentage of total eligible participant compensation) remains unchanged at 25% in 2016.

Should you have questions about the 2016 retirement plan limits or the effect that they will have on the administration of your retirement plan in 2016, please contact us to setup an appointment.