The IRS has announced the 2016 cost-of-living adjustments for various retirement plan dollar limits. The 2016 limits, which remain unchanged from 2015, are as follows:
| Limit | 2014 | 2015 | 2016 |
| Section 402(g) limit for 401(k) pre-tax contributions | $17,500 | $18,000 | $18,000 |
| Section 414(v) catch-up contribution limit | $5,500 | $6,000 | $6,000 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes | $260,000 | $265,000 | $265,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit | 6.73% | 6.79% | 6.79% |
| Section 415 limit on annual additions to a defined contribution plan | $52,000 | $53,000 | $53,000 |
| Section 415 limit on annual benefits under a defined benefit plan | $210,000 | $210,000 | $210,000 |
| Compensation threshold for defining “Highly Compensated Employees” | $115,000 (in 2013) |
$115,000 (in 2014) |
$120,0001 (in 2015) |
| Compensation threshold for officers to be “Key Employees”2 |
$170,000 | $170,000 | $170,000 |
| Social Security (OASDI) Wage Base | $117,000 | $118,500 | $118,500 |
1 An employee with compensation exceeding $120,000 in 2016 will be an HCE in 2017.
2 5% owners and 1% owners with compensation exceeding $150,000 are also key employees.