On October 21, 2015, the IRS announced the 2016 cost-of-living adjustments applicable to dollar limitations for retirement plans and other items. View the whitepaper for a table with more information.

1. October 2015
IRS Announces No Change in Benefit Plan Limitations for 2016
DOLLAR LIMITATIONS ON BENEFITS AND CONTRIBUTIONS FOR RETIREMENT PLANS
HAVE NOT INCREASED FOR 2016
By Bernard Kaplan
On October 21, 2015, the IRS announced the 2016 cost-of-living adjustments applicable to dollar
limitations for retirement plans and other items.
Retirement plans are subject to annually adjusted dollar limitations by the IRS for cost-of-living increases,
and are normally determined based on inflation data provided by the Bureau of Labor Statistics’ release
of the Consumer Price Index.
401(k) Plan Limits 2016 2015 2014 2013 2012
401(k) Elective Deferrals $18,000 $18,000 $17,500 $17,500 $17,000
Catch-Up Contribution Limit $6,000 $6,000 $5,500 $5,500 $5,500
Annual Defined Contribution Limit $53,000 $53,000 $52,000 $51,000 $50,000
Annual Compensation Limit $265,000 $265,000 $260,000 $255,000 $250,000
Highly Compensated Employees $120,000 $120,000 $115,000 $115,000 $115,000
Non 401(k) Related Limits
403(b) / 457 Elective Deferrals $18,000 $18,000 $17,500 $17,500 $17,000
SIMPLE Employee Deferrals $12,500 $12,500 $12,000 $12,000 $11,500
SIMPLE Catch-Up Deferral $3,000 $3,000 $2,500 $2,500 $2,500
SEP Minimum Compensation $600 $600 $550 $550 $550
SEP Annual Compensation Limit $265,000 $265,000 $260,000 $255,000 $250,000
Defined Benefit Plan Limit $210,000 $210,000 $210,000 $205,000 $200,000
Social Security Wage Base $118,500 $118,500 $117,000 $113,700 $110,100
IRA Deductible Contribution Limit $5,500 $5,500 $5,500 $5,500 $5,000
IRA Catch-Up Contribution Limit $1,000 $1,000 $1,000 $1,000 $1,000
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