Pension Plan Limits

 

Chart of Selected Limits

410k Plan Limits

20152016
401k Elective Deferrals  
18,000.00
18,000.00
Annual Defined Contribution
53,000.00
53,000.00
Annual Compensation Limit
265,000.00
265,000.00
Catch-Up Contribution
6,000.00
6,000.00
Highly Compensated Employees
120,000.00
120,000.00

 

Non-401k Related Limits

403(b)/457 Elective Deferrals
18,000.00
18,000.00
Simple Employee Deferrals
12,500.00
12,500.00
Simple Catch-Up Deferral
2,500.00
2,500.00
SEP Minimum Compensation
550.00
550.00
SEP Annual Compensation Limit
255,000.00
260,000.00
Social Security Wage Base
118,500.00
118,500.00

 

The elective deferral (contribution) limit for employees who participate in section 410k, 403b, or 457b plans, changed to $17,000.00.

 

The catch-up contribution limit under those plans for those aged 50 and over remains unchanged at 5,500.00

 

The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and head of households who are active participants in an employer-sponsored retirement plan and have modified adjusted gross incomes (AGI) between 56,000 and 66,000, unchanged from 2010. For married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan, the income phase-out range is 90,000 to 110,000, up from 89,000 to 109,000. For an IRA contributor who is not an active participant in an employer-sponsored retirement plan and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between 169,000 and 179,000, up from 167,000 and 177,000.

 

The AGI phase-out range for taxpayers making contributions to a Roth IRA is 169,000 to 179,000 for married couples filing jointly, up from 167,000 to 177,000 in 2010. For singles and head of household, the income phase-out range is 107,000 to 122,000, up from 105,000 to 120,000. For a married individual filing a separate return who is an active participant in an employer sponsored retirement plan, the phase out range is remains 0 to 10,000.