The Internal Revenue Agency (IRS) has announced the 2016 401(k) and IRA Contribution Limits, which were published on October 21, 2015. The pension plan limitation, generally speaking, will not change for the 2016 year, because the cost-of-living increase did not meet the threshold to trigger any adjustment. The following explains the adjustments that have and have not been made to contribution limits for the 2016 tax year:
The 401(k) and catch-up contribution limits remain the same as they were in 2015. Employees are able to contribute up to $18,000 towards their 401(k) in 2016. Those over the age of 50-years-old are able to contribute an additional $6,000.
Similarly, the annual limit upon Individual Retirement Arrangement (IRA) and catch-up contributions will remain the same as they were last year, in 2015. Individuals are able to contribute up to $5,500 towards their IRA in 2016. The catch-up contribution limit for individuals over the age of 50 remains $1,000.… Read More »