2016 Retirement Plan Contribution Limits
Tame yearly inflation means very little change.
Provided by Claytom Shum
Over the past 12 months, consumer prices have increased very little. The latest Consumer Price Index (September) shows 0.0% yearly inflation and only 1.9% core yearly inflation. That means no cost-of-living adjustment for Social Security, and very few IRS adjustments to retirement plan contribution limits.1
Roth IRA & traditional IRA contribution limits stay the same for 2016. Those 49 and younger in 2016 can contribute up to $5,500 of earned income to their IRAs, while those 50 and older will be able to contribute $6,500.2
401(k), 403(b), 457 & TSP annual contribution limits are also unchanged. Savers will be able to defer up to $18,000 into these plans in 2016 with an additional catch-up contribution of up to $6,000 permitted for those 50 or older.3
SIMPLE IRAs? No COLA for those accounts either. The base contribution limit for a SIMPLE IRA stays at $12,500 next year, the catch-up contribution limit at $3,000.2