October 28, 2015

The IRS released inflation-adjusted items for 2016. The new limits are listed below:

For 401(k), 403(b) and most 457 plans, the 2016 elective deferral limit will remain unchanged at $18,000. The catch-up contribution limit for employees ages 50 and over who participate in 401(k), 403(b), and most 457 plans will continue at $6,000.

The limitation used in the definition of highly compensated employees under Section 414(q)(1)(B) for 2016 will remain unchanged at $120,000.

To review IRS 2015-118, please click this link: https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations;-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016

To review IRS Rev. Proc. 2015-53, please click this link: https://www.irs.gov/pub/irs-drop/rp-15-53.pdf