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Contact Us |
President
425.289.7600
President of Berntson Porter Wealth Management, LLC
425.289.7601
Directors:
Assurance Services
425.289.7608
Tax Services
425.289.7612
Allan Vander Hamm
Business Transition Services 425.289.7613
Forensic, Economic, and Valuation Services
425.289.7617
State and Local Tax (SALT) Services
425.289.7609
International Consultancy Services
425.289.7625
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IRS Announces
2016 Retirement Plan
Contribution Limitations
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On October 21, 2015, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations
for pension plans and other retirement-related items for tax year 2016. Most of the limits were unchanged because
the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment.
The following table is provided to help you determine how much to set aside for retirement planning in 2016.
Tax Year
| 2016
| 2015
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IRA Contribution Limit - 219 (b) (5) (A) - Under Age 50
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$5,500
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$5,500
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IRA Catch-Up Contribution Limit - 219 (b) (5) (B) - Age 50 or Over
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$1,000
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$1,000
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SIMPLE IRA Maximum Contributions - 408(p)(2)(E) - Under Age 50
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$12,500
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$12,500
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SIMPLE IRA Maximum Catch-Up Contribution - 414 (v) (2) (B) (ii) - Age 50 or Over
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$3,000
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$3,000
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401 (k) and 403(b) Maximum Contributions
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$18,000
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$18,000
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401 (k) and 403(b) Maximum Catch-Up Contribution - Age 50 or Over
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$6,000
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$6,000
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Coverdell ESA Contribution Limit
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$2,000
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$2,000
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Employer Defined Contribution Limit - 415 (c) (1) (A)
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$53,000
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$53,000
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Elective Deferral Limit - 402(g) (1)
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$18,000
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$18,000
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Elective Deferral Catch-Up Limit - 414 (v) (2) (B) (i)
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$6,000
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$6,000
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Annual Compensation Cap - 401(a) (17)/404 (I)
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$265,000
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$265,000
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SEP Minimum Compensation - 408 (k) (2) (C)
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$600
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$600
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SEP Maximum Compensation - 408 (k) (3) (C)
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$265,000
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$265,000
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457 Elective Deferrals - 457(e) (15)
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$18,000
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$18,000
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Defined Benefit Limit - 415 (b) (1) (A)
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$210,000
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$210,000
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Highly Compensated Employee (HCE) - 414 (q) (1) (B)
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$120,000
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$120,000
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Key Employee - 416 (i) (1) (A) (i)
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$170,000
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$170,000
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Taxable Wage Base
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$118,500
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$118,500
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425.454.7990 fax: 425.454.7742 |
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Copyright � 2015 Berntson Porter & Company, PLLC
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