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.
