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