Retirement contribution COLA limits
The Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for tax year 2016. Some limitations such as those governing 401(k) plans and IRAs, will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment. However, other limitations will increase for 2016. Highlights include:
- 401(k) plan contribution limit: $18,000
- 401(k) catch-up: $6,000
- IRA contribution limit: $5,500
- IRA catch-up: $1,000
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