Employee Benefits Alert: Changes in 2016 Annual Retirement Benefit and Related Limits

The IRS recently announced the annual qualified retirement benefit limits for 2016. The most commonly used limitations are unchanged. The following is a Desk Reference Summary of the most common limits and how they compare with the limits for 2014 and 2015.

  2014 2015 2016

Dollar Limit for Defined Benefit Plans

$210,000

$210,000

$210,000

Dollar Limit for Defined Contribution Plans

52,000

53,000

53,000

401(k) and 403(b) Maximum Deferral

17,500

18,000

18,000

Catch-up Contribution for Participants Aged 50 or over (401(k) and 403(b))

5,500

6,000

6,000

Social Security Taxable Wage Base

117,000

118,500

118,500

Maximum Compensation Allowable for Benefit Purposes

260,000

265,000

265,000

SIMPLE Maximum Deferral

12,000

12,500

120,000

SIMPLE Catch-up Contribution for Participants Aged 50 or over

2,500

3,000

3,000

457 Maximum Deferral

17,500

18,000

18,000

 

The Employee Benefits Alert is intended to keep readers current on matters affecting employee benefits, and is not intended to be legal advice. If you have any questions, please call William S. Carter at 412.566.6016, Kathryn A. English at 412.566.1226, Heather Stone Fletcher at 412.566.6112, Michael J. Herzog at 412.566.6130, Sandra R. Mihok at 412.566.1903, Paul M. Yenerall at 412.566.1944, or any other attorney with whom you have been working.

Share This Post