2016 Pension Limits

2015 Pension Limits

The 2016 pension limits remain unchanged from 2015.

In working with your qualified plan, the plan, plan sponsor, and participants will be subject to various pension limits as prescribed by the Internal Revenue Code.

Section 415 of the Internal Revenue Code provides for dollar limits on the benefits and the contributions for qualified retirement plans.

The 2016 pension limits as set by the Internal Revenue Service can be found below and on the IRS Website.

2016 Pension Limits

The 2016 pension limits remain unchanged from 2015

2016

2015

2014

Maximum Annual Pension Benefit

$210,000

$210,000

$210,000

Maximum Annual Addition

$53,000

$53,000

$52,000

Maximum Elective Deferral

$18,000

$18,000

$17,500

Catch-up Contribution-401(k), 403(b)

$6,000

$6,000

$5,500

Qualified Plan Compensation Limit

$265,000

$265,000

$260,000

Highly Compensated Employee  $120,000

$120,000

$115,000

Key Employee Compensation  $170,000

$170,000

$170,000

SIMPLE Maximum Contribution  $12,500

$12,500

$12,000

The 2016 cost-of-living adjustments were not significant enough to trigger an increase to the 2016 pension limits. Thus, the 2016 pension limits are the same as those for 2015.

Note that the maximum annual addition limit applies to defined contribution plans, such as 401(k)/profit sharing plans. 401(k) elective deferrals are in fact applied to this annual addition limit.


Contact Us to Receive a Plan Design for Your Company

Pinnacle Plan Design is a third-party administrator (TPA) for employer-sponsored qualified retirement plans. We specialize in retirement plan design, administration and actuarial consulting. Pinnacle has a local presence in Tucson and Phoenix, Arizona (AZ), as well as Houston, Texas (TX) and Columbus, Ohio (OH), and we proudly serve businesses nationwide.

  • This field is for validation purposes and should be left unchanged.

Schedule a Call

Let's talk!

Close