888-401kinc 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.
