IRS Updated Plan Limits for 2016

IRS has announced the retirement plan and employee benefits limits for 2016. Most of the limits are unchanged. The exception is the HSA Maximum Contribution for Family increased $100 to $6,750.  Here is a chart showing the limits for 2014 through 2016:

Type of Limitation 2016 2015 2014
415 Defined Benefit Plans $210,000 $210,000 $210,000
415 Defined Contribution Plans $53,000 $53,000 $52,000
401(k) Elective Deferrals, 457(b) and 457(c)(1) $18,000 $18,000 $17,500
401(k) Catch-Up Deferrals $6,000 $6,000 $5,500
SIMPLE Employee Deferrals $12,500 $12,500 $12,000
SIMPLE Catch-Up Deferrals $3,000 $3,000 $2,500
Annual Compensation Limit $265,000 $265,000 $260,000
SEP Minimum Compensation $600 $600 $550
SEP Annual Compensation Limit $265,000 $265,000 $260,000
Highly Compensated $120,000 $120,000 $115,000
Key Employee (Officer) $170,000 $170,000 $170,000
Income Subject To Social Security Tax  (FICA) $118,500 $118,500 $117,000
Social Security (FICA) Tax For ER & EE (each pays) 6.20% 6.20% 6.20%
Social Security (Med. HI) Tax For ERs & EEs (each pays) 1.45% 1.45% 1.45%
SECA (FICA Portion) for Self-Employed 12.40% 12.40% 12.40%
SECA (Med. HI Portion) For Self-Employed 2.9% 2.90% 2.90%
IRA Contribution $5,500 $5,500 $5,500
IRA catch-up Contribution $1,000 $1,000 $1,000
HSA Max Single/Family $3,350/6,750 $3,350/6,650 $3,300/6,550
HSA Catchup $1,000 $1,000 $1,000
HSA Min. Annual Deductible Single/Family $1,300/2,600 $1,300/2,600 $1,250/2,500

Author: Erwin Kratz

Erwin Kratz practices exclusively in the areas of ERISA and employee benefits law, focusing on tax and regulatory matters relating to qualified and nonqualified deferred compensation and welfare benefits.