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2016 Plan Limitations

The IRS has announced that there are no cost-of-living adjustments to the following key retirement plan limitations for 2016:

  • Elective deferrals to 401(k), 403(b), and most 457 plans: $18,000
  • Catch-up contributions to 401(k), 403(b), and most 457 plans: $6,000
  • Annual additions to a defined contribution plan account: $53,000
  • SIMPLE plan deferrals: $12,500
  • SIMPLE plan catch-up contributions: $3,000
  • Maximum annual benefit from a defined benefit plan: $210,000
  • Annual compensation used to determine qualified plan benefits or contributions: $265,000
  • Compensation used to determine whether officers are key employees for top-heavy plan purposes: $170,000
  • Dollar limit used in the definition of highly compensated employee: $120,000
  • IRA contributions: $5,500
  • IRA catch-up contributions: $1,000

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