On October 21, 2015, the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2016. The increase in the cost-of-living index did not meet the statutory thresholds that trigger adjustments. As a result, most of the general pension limitations, including the individual limits on deferrals and catch-up contributions, as well as the limit on annual compensation, will not change for 2016. The following table highlights some of the key limits that will continue to affect tax-qualified pension plans:
Click here to view the table.
The complete IRS table of cost-of-living adjustments for retirement items can be found on the IRS’s website.