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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