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401k and Retirement Plan Limits for the Tax Year 2016
Plan limits for 2017 can be found here.
On October 21, 2015, the Internal Revenue Service announced cost of living adjustments 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 meet the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds.
| Chart of Select Limits |
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| 401k Plan Limits for Year |
2016 |
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
| 401k Elective Deferrals |
$18,000 |
$18,000 |
$17,500 |
$17,500 |
$17,000 |
$16,500 |
$16,500 |
| Annual Defined Contribution Limit |
$53,000 |
$53,000 |
$52,000 |
$51,000 |
$50,000 |
$49,000 |
$49,000 |
| Annual Compensation Limit |
$265,000 |
$265,000 |
$260,000 |
$255,000 |
$250,000 |
$245,000 |
$245,000 |
| Catch-Up Contribution Limit |
$6,000 |
$6,000 |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
| Highly Compensated Employees |
$120,000 |
$120,000 |
$115,000 |
$115,000 |
$115,000 |
$110,000 |
$110,000 |
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| Non-401k Related Limits |
| 403(b)/457 Elective Deferrals |
$18,000 |
$18,000 |
$17,500 |
$17,500 |
$17,000 |
$16,500 |
$16,500 |
| SIMPLE Employee Deferrals |
$12,500 |
$12,500 |
$12,000 |
$12,000 |
$11,500 |
$11,500 |
$11,500 |
| SIMPLE Catch-Up Deferral |
$3,000 |
$3,000 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
| SEP Minimum Compensation |
$600 |
$600 |
$550 |
$550 |
$550 |
$550 |
$550 |
| SEP Annual Compensation Limit |
$265,000 |
$265,000 |
$260,000 |
$255,000 |
$250,000 |
$245,000 |
$245,000 |
| Social Security Wage Base |
$118,500 |
$118,500 |
$117,000 |
$113,700 |
$110,100 |
$106,800 |
$106,800 |
Download a PDF of this chart.
Highlights of limitations that changed from 2015 to 2016 include the following:
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $184,000 and $194,000, up from $183,000 and $193,000.
- The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000. For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
- The AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,500 for married couples filing jointly, up from $61,000; $46,125 for heads of household, up from $45,750; and $30,750 for married individuals filing separately and for singles, up from $30,500.
The next page contains details on both the unchanged and adjusted limitations for 2016.
(More...)
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