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
Contact a Lumin Financial advisor to ensure your participants receive adequate education regarding new 2016 COLA limits and other important plan information.
Disclosure: Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific investment, or investment strategy. Investments involve risk and are not guaranteed. Information has been gathered from sources believed to be reliable, but cannot be represented as accurate or complete. Before investing, you should consult your investment, tax, or legal advisor.
