Annual Limit on Contributions and Compensation

Type of Limitation

2016

2015

 

 

 

Annual Compensation Limit:

 

 

Qualified Plans

265,000

265,000

SAR SEP

265,000

265,000

SEP Compensation Limit (minimum)

600

600

SEP Compensation Limit (maximum)

265,000

265,000

 

 

 

Limits on benefits and contributions:

 

 

Defined Contribution Plans (see note 1)

53,000

53,000

Defined Benefit Plans (see note 1)

210,000

210,000

401(k), 403(b), 457(b)(2) and 457(c)(1) (see note 2)

18,000

18,000

SIMPLE Plans

12,500

12,500

IRA

5,500

5,500

 

 

 

Catch-up contributions:

 

 

401(k), 403(b), 457(b)(2) and 457(c)(1) (see note 3)

6,000

6,000

SIMPLE Plans

3,000

3,000

IRA

1,000

1,000

 

 

 

Highly Compensated Threshold

120,000

120,000

 

 

 

Key Employee Threshold:

 

 

Officer

170,000

170,000

1% Owner

150,000

150,000

 

 

 

Social Security:

 

 

Income Subject to Social Security Tax

118,500

118,500

Tax Rate

6.20%

6.20%

Medicare Tax Rate

1.45%

1.45%

Combined Rate

7.65%

7.65%

 

 

 

Other:

 

 

Tax Credit ESOP Threshold Bal

1,070,000

1,070,000

Amount for Lengthening of 5 yr ESOP Period

210,000

210,000

1 Effective for limitation years ending in calendar year
2 Effective for limitation years beginning in calendar year
3 Catch up contributions may only be made after the annual deferrals have been maximized either based on the annual limit, or a limitation imposed by your plan document.

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