The IRS has announced the dollar limits for contributions and benefits in retirement and certain deferred compensation plans for 2016. We have set out a chart summarizing the key limits below, including how they compare to those in prior years.
The key limits remain unchanged from 2015. The limits did not change because the IRS determined that the increase in the cost-of-living index was insufficient to trigger an adjustment.
In general, no plan document amendments should be required to reflect the 2016 limits. Plans generally incorporate cost-of-living adjustments by reference and, as mentioned above, the key limits have not changed. However, plans that are established or restated in 2016, and SPDs that are required to be updated in 2016, should reflect the 2016 dollar amounts.
Summary of Key Dollar Limits for Employee Benefit Plans
Click here to view the table.