October 27, 2015

401(k) Contribution Limits Don’t Go Up for 2016

The IRS has announced the contribution limits for 2016. While the cost-of-living index the IRS uses rose slightly, it didn’t increase enough to trigger an adjustment in contribution limits, so most defined contribution plans and IRAs will continue to have the same limits on how much participants can contribute in 2016. The contribution limits for 2016 are as follows:

2015 Limits 2016 Limits
401(k), 403(b), and 457 plans $18,000 $18,000
Age 50+ catch-up contribution $6,000 $6,000
Traditional and Roth IRAs $5,500 $5,500
Age 50+ catch-up contribution $1,000 $1,000