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2016; not much different than 2015


As 2015 is just starting to wind down, the government has already set  many limits for 2016.  In general, the limitations will not change as a result of the cost of living index not meeting the statutory thresholds that trigger a change.

The Old-Age, Survivors, and Disability Insurance (OASDI), aka Social Security, wage limit remains unchanged at $118,500 and a tax rate of 6.20%.  The last time the OASDI wage limit did not increase was between 2009 to 2011 where it remained at $106,800.  Prior to 2009, the limit had always increased going all the way back to 1950.

The deferral limits for your pension contributions also remain unchanged at $18,000 for your 401(k), 403(b), and most 457 plans.  Those aged 50 and over who contribute a catch-up contribution, your additional contribution also held at $6,000.

SIMPLE retirement plans.  Yes, you guessed it, contribution limit remains unchanged at $12,500.


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