IRS Announces No Change to Limits for 2016
The IRS announced today that there will be no cost of living increases next year. Important limits related to retirement plans for 2016 are as follows:
- Sections 401(k), 403(b) and 457(b) Limits: Remains at $18,000.
- Sections 401(k), 403(b) and 457(b) Catch-Up Limits: Remains at $6,000.
- Defined Benefit Annual Limit: Remains at $210,000.
- Maximum Compensation Limit: Remains at $265,000.
- Defined Contribution Annual Addition: Remains at $53,000, plus a Catch-Up Contribution.
- Highly Compensation Employee Limit: Remains at $120,000.
- Social Security Wage Base: Remains at $118,500.