Plan Limits

 
2016
2017
401(k) PLANS/403(b) PLANS
 
 
The calendar year limitation on elective deferrals underIRC §402(g)(1).
$18,000
$18,000
Catch-up contribution amount under IRC §414(v)(2)(B)(i) for participants who are age 50 or older by the last day of the calendar year.
$6,000
$6,000
DEFINED CONTRIBUTION PLAN LIMITATION
 
 
The limitation for defined contribution plans (Profit Sharing, 401(k), Money Purchase) under IRC §415(c)(1)(A). This code
section limits the allocation of contribution (salary deferral, match,
employer contribution) to a participant to the lesser of 100%
of compensation or this amount. Catch-up contributions (see
above) may be made in addition to this amount.
$53,000
$54,000
HIGHLY COMPENSATED EMPLOYEE
 
 

Compensation for purposes of defining highly compensated employees under IRC §414(q)(1)(B). A highly compensated
employee is as follows:

  1. More than 5% owner (and family members under stock attribution rules)
  2. Employee earning over the above amount in the prior plan year*

This means if you earn over $120,000 during the Plan Year beginning in
2015* then you will be considered a highly compensated employee for
the plan year beginning in 2016.

*and, if elected, are in the top 20% of employees, ranked by compensation

$120,000
$120,000
COMPENSATION LIMIT
 
 
The annual compensation limit under IRC §401(a)(17) and §401(l). This is the maximum compensation amount which can
be used for contribution allocations and discrimination testing.
$265,000
$270,000
KEY EMPLOYEE
 
 
Compensation for purposes of defining key employees
$170,000
$175,000