The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
- Limits by plan type (IRA, 401(k), SEP, SIMPLE IRA, 403(b), 457(b), defined benefit)
- 2016 cost-of-living adjustments for pension plans and retirement-related items (IR-2015-118)
- COLA Table for prior years’ dollar limitations and Internal Revenue Code references.
|IRA Contribution Limit||$5,500||$5,500||$5,500|
|IRA Catch-Up Contributions||1,000||1,000||1,000|
IRA AGI Deduction Phase-out Starting at
|Single or Head of Household||61,000||61,000||60,000|
|SEP Minimum Compensation||600||600||550|
|SEP Maximum Contribution||53,000||53,000||52,000|
|SEP Maximum Compensation||265,000||265,000||260,000|
|SIMPLE Maximum Contributions||12,500||12,500||12,000|
401(k), 403(b), Profit-Sharing Plans, etc.
|Defined Contribution Limits||53,000||53,000||52,000|
|Defined Benefit Limits||210,000||210,000||210,000|
|457 Elective Deferrals||18,000||18,000||17,500|
|Control Employee (board member or officer)||105,000||105,000||105,000|
|Control Employee (compensation-based)||215,000||215,000||210,000|
|Taxable Wage Base||118,500||118,500||117,000|