10/21/2015

2016 Cost of Living Adjustments Announced

The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Today, the Internal Revenue Service announced the 2016 cost-of-living adjustments affecting dollar limitations for qualified retirement plans. All limits are unchanged from 2015:

401(k), 403(b), Profit-Sharing Plans, etc. 
2016 2015 2014
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
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
Taxable Wage Base 118,500 118,500 117,000


For a historical chart of the applicable dollar limitations since 1983, click here.

For questions about the qualified plan limitations or any other benefits questions, contact a member of Holland & Hart's Benefits Law Group.

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