IRS Announces 2016 Plan Contribution and Benefit Limits

On October 21, 2015, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items beginning January 1, 2016. See the chart below for further details.

2015 2016
RETIREMENT PLANS
Annual Compensation Limits For Retirement Program Purposes 265,000 265,000
Elective Deferrals 403(b) – (for under age 50) 18,000 18,000
Catch-up Contributions For 403(b) Plan Participants age 50 and over 6,000 6,000
457 (b) Elective Deferrals 18,000 18,000
457(b) Catch Up Contribution (Subject To Age And Other Restrictions) 18,000 18,000
Defined Contribution Limits On Maximum Combined Employee/Employer Contributions To Defined Contributions Plans 53,000 53,000
OTHER
Social Security Taxable Wage Base 118,500 118,500
Medicare Wage Base No Limit No Limit

All figures in US dollars.

Sources: www.tiaa-cref.orgwww.irs.gov

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