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COLA Increases for Dollar Limitations on Benefits and Contributions

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. 


 

  2016 2015 2014

IRAs

IRA Contribution Limit $5,500 $5,500 $5,500
IRA Catch-Up Contributions 1,000 1,000 1,000

IRA AGI Deduction Phase-out Starting at

Joint Return 98,000 98,000 96,000
Single or Head of Household 61,000 61,000 60,000

SEP

SEP Minimum Compensation 600 600 550
SEP Maximum Contribution 53,000 53,000 52,000
SEP Maximum Compensation 265,000 265,000 260,000

SIMPLE Plans

SIMPLE Maximum Contributions 12,500 12,500 12,000
Catch-up Contributions 3,000 3,000 2,500

401(k), 403(b), Profit-Sharing Plans, etc.

Annual Compensation 265,000 265,000 260,000
Elective Deferrals 18,000 18,000 17,500
Catch-up Contributions 6,000 6,000 5,500
Defined Contribution Limits 53,000 53,000 52,000
ESOP Limits

1,070,000

210,000

1,070,000

210,000

1,050,000

210,000

Other

HCE Threshold 120,000 120,000 115,000
Defined Benefit Limits 210,000 210,000 210,000
Key Employee 170,000 170,000 170,000
457 Elective Deferrals 18,000 18,000 17,500
Control Employee (board member or officer) 105,000 105,000 105,000
Control Employee (compensation-based) 215,000 215,000 210,000
Taxable Wage Base 118,500 118,500 117,000

 

Page Last Reviewed or Updated: 11-Apr-2016