The US Internal Revenue Service (IRS) recently announced their pension plan limits for 2016. All of the limits below are unchanged from 2015. These limits are reviewed and revised annually, so employers should note these pension limit changes for planning/forecasting purposes.
- Annual compensation limit: $265,000
- Maximum Defined Contribution / Profit Sharing contribution: $53,000
- Maximum Simplified Employee Pension (SEP) contribution: $53,000
- Maximum 401(k) contribution: $18,000
- Catch-up contributions limit for age 50+: $6,000
- Maximum Savings Incentive Match Plan (SIMPLE) contribution: $12,500
- Maximum annual benefit of Defined Benefit plans: $210,000