The Internal Revenue Service released cost-of-living adjustmentsfor retirement plan contributions today.

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As expected, contribution caps will remain largely unchangedfrom last year.

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In a press release, the IRS explained that Social Security’s cost-of-living indexdid not meet the statutory thresholds required to triggeradjustments to plan contribution caps.

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As with last year, in 2016 the elective deferral contributionlimit for participants in 401(k), 403(b) and most 457 plans, aswell as the Thrift Savings Plan that is sponsored by the federalgovernment, will be $18,000.

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Catch-up contribution limits for participants in definedcontribution plans age 50 and over will be $6,000.

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Contribution caps on SIMPLE retirement accounts will stay at$12,500.

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And the limit on annual contributions to IRAs will also remainunchanged, at $5,500, with a catch-up cap over another $1,000 forsavers age 50 or older.

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Total contribution limits, including employer matches, todefined contribution plans will also be unchanged, capped at$53,000.

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The annual maximum benefit under defined benefit plans will alsoremain unchanged at $210,000.

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Ever-so-slight changes did occur in adjusted gross income capsdetermining which savers qualify for retirement savers credits.Here is what the IRS highlighted:

  • For an IRA contributor who is not covered by a workplaceretirement plan and is married to someone who is covered, thededuction is phased out if the couple’s income is between $184,000and $194,000, up from $183,000 and $193,000.

  • The AGI phase-out range for taxpayers making contributions to aRoth IRA is $184,000 to $194,000 for married couples filingjointly, up from $183,000 to $193,000. For singles and headsof household, the income phase-out range is $117,000 to $132,000,up from $116,000 to $131,000.

  • The AGI limit for the saver’s credit (also known as theretirement savings contribution credit) for low- andmoderate-income workers is $61,500 for married couples filingjointly, up from $61,000; $46,125 for heads of household, up from$45,750; and $30,750 for married individuals filing separately andfor singles, up from $30,500.

Click here for access to the IRS’s release,which also documents information on Employee Stock Option Plans,and increases to the “systemically important” threshold formultiemployer plans.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.