Pension Plan Limits for 2016

By: Anthony Agbay, CFP®, AIF®
The Agbay Group

The IRS recently released its pension plan limits for 2016 along with income tax rates, education deductions and estate tax rates.  For retirement plan participants, 2016 marks a year of no changes for retirement plan deferral rates.  In order for annual limits to change, certain statutory thresholds need to be triggered based on a change in the cost-of-living index.  Those thresholds were not met so 2016 will be a year of status quo.  Conversely, 2015 marked a year of significant changes including the first change for some limits in over five years.  For a summary of the retirement plan limits and other rates, please see 2016 Key Numbers