Retirement Contribution Limits

Here are the 2015/2016 updates to salary deferral limits:

• Maximum to 401(k), 403(b), 457 and Thrift plans: $18,000 (over 50 can add $6,000)
• Maximum to  SIMPLE 401(k) and SIMPLE IRA: $12,500 (over 50 can add $3,000)
• Maximum to Traditional and Roth IRA: $5,500 (over 50 can add $1,000)
• Maximum to Defined Contribution Plan and SEPs: $53,000

Like many other things in the tax code, the above are subject to income limitations and thresholds:

• Annual compensation limit for determining contributions: $265,000
• SEP minimum compensation amount: $600
• Limit of Annual benefits under a Defined Benefit Plan: $210,000

And then there is the distinction of being a highly compensated employee:

• Highly compensated employee threshold is: $120,000

For more questions about retirement planning please reach out to info@tunstallorg.com