CONTACT US
The EisnerAmper alert on Retirement Plan Limitations for 2016 covers recent changes affecting employee benefit plans

Retirement Plan Limitations for 2016

As an ongoing service to our clients, EisnerAmper LLP is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.

The Internal Revenue Service announced on October 21 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2016. None of the limits have changed from 2015, as noted below.

Code Section 2016   2015 2014
IRAs 
IRA Contribution Limit – 219(b)(5)(A)     $5,500 5,500  5,500 
IRA Catch-Up Contributions – 219(b)(5)(B)     $1,000 1,000  1,000 
  
IRA AGI Deduction Phase-out Starting at 
Joint Return        $98,000 98,000  96,000 
Single or Head of Household     $61,000 61,000  60,000 
SEP 
SEP Minimum Compensation – 408(k)(2)(C)        $600 600  550 
SEP Maximum Compensation – 408(k)(3)(C)     $265,000 265,000  260,000 
401(k), 403(b), Profit-Sharing Plans, etc. 
Annual Compensation – 401(a)(17)/404(l)     $265,000 265,000  260,000 
Elective Deferrals – 402(g)(1)     $18,000 18,000 17,500
Catch-up Contributions – 414(v)(2)(B)(i)     $6,000 6,000 5,500 
Defined Contribution Limits – 415(c)(1)(A)      $53,000 53,000  52,000 
ESOP Limit – 409(o)(1)(C) – Account Balance     $1,070,000 1,070,000   1,050,000 
ESOP Limit – 409(o)(1)(C) – Lengthening 5-Year Period $210,000 210,000  210,000 
Other 
HCE Threshold – 414(q)(1)(B)               $120,000 120,000  115,000 
Defined Benefit Annual Limit – 415(b)(1)(A)     $210,000 210,000  210,000 
Key Employee – 416(i)(1)(A)(i)     $170,000 170,000  170,000 
457 Elective Deferrals – 457(e)(15)     $18,000 18,000 17,500 
Control Employee – 1.61-21(f)(5)(i)       $105,000 105,000  105,000 
Control Employee – 1.61-21(f)(5)(iii)     $215,000 215,000  210,000 
Social Security Taxable Wage Base     $118,500 118,500 117,000 

Peter Alwardt is a Tax Partner specializing in employee benefits, tax and ERISA issues for domestic and international clients. He is a member of the American Institute of Certified Public Accountants and NY State Society of CPAs.

* Required