2016 Employee Benefits Plan Limits

Contributed by Jo-Anne M. Mineweaser

The IRS has announced the retirement plan limits for 2016.  As you can see from the chart below, there are no changes from the limits set in 2015.

 

Code Section 2016 2015
401(a)(17)/404(l) – Annual Compensation $265,000 $265,000
402(g)(1) – Elective Deferrals 18,000 18,000
408(k)(2)(C) – SEP Minimum Compensation 600 600
408(k)(3)(C) – SEP Maximum Compensation 265,000 265,000
408(p)(2)(E) – SIMPLE Maximum Contributions 12,500 12,500
409(o)(1)(C) – ESOP Maximum Account Balance 1,070,000 1,070,000
409(o)(1)(C) – ESOP Maximum Dollar Amount 210,000 210,000
414(q)(1)(B) – Highly Compensated Employee Threshold 120,000 120,000
414(v)(2)(B)(i) – Catch-up Contribution 6,000 6,000
414(v)(2)(B)(ii) – Catch-up Contribution – SIMPLE 401(k) Plans 3,000 3,000
415(b)(1)(A) – Defined Benefit Annual Benefit Limit 210,000 210,000
415(c)(1)(A) – Defined Contribution Annual Addition Limit 53,000 53,000
416(i)(1)(A)(i) – Key Employee Dollar Limit 170,000 170,000
457(e)(15) – 457(b) Salary Deferral Limit 18,000 18,000

 

The limits for Health Savings Accounts and High Deductible Health Plans, listed below, were announced earlier in the year.

 

Code Section 2016 2015
223(c) – HDHP Minimum Annual Deductible – Self-Only $1,300 $1,300
223(c) – HDHP Minimum Annual Deductible – Family 2,600 2,600
223(c) – HDHP Out-of-Pocket Maximum – Self-Only 6,550 6,450
223(c) – HDHP Out-of-Pocket Maximum – Family 13,100 12,900
223(b) – HSA Maximum Contribution Limit – Self-Only 3,350 3,350
223(b) – HSA Maximum Contribution Limit – Family 6,750 6,650
223(b) – HSA Catch-Up Contribution Limit 1,000 1,000

If you have any questions regarding any of these limits, please contact Jo-Anne Mineweaser at (412) 594-3920 or jmineweaser@tuckerlaw.com