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IRS Announces 2016 Pension Plan Limitations

On October 21st, the Internal Revenue Service announced that, due to the absence of sufficient increase in the consumer price index over the past year, there will not be a cost of living adjustment for retirement plan contributions and benefits in 2016. Therefore, the dollar limitation for 401(k) and 403(b) plans will remain at $18,000 plus $6,000 for those individuals eligible for catch-up contributions. The compensation limit also remains unchanged at $265,000.