The IRS recently announced cost-of-living adjustments for 2016, which leave many key plan limits unchanged. The following is a list of some key annual limits that will apply to qualified retirement plans in 2016:
- Elective deferrals to 401(k) and 403(b) plans: $18,000.
- Annual additions to a defined contribution plan: $53,000.
- Catch-up contributions for employees aged 50 and over to 401(k) and 403(b) plans: $6,000.
- Annual benefit limit for a defined benefit plan: $210,000.
- Compensation dollar limit for defining a ?ãkey employee?ÃÂ¥ in a top heavy plan: $170,000.
- Compensation dollar limit for defining a ?ãhighly compensated employee?ÃÂ¥: $120,000.
- Compensation limit in calculating a participant?ÃÃs benefit accruals: $265,000.