COLA Increases - Dollar Limitations on Contributions & Benefits

If you're looking for the contribution limits be sure to check out the IRS web page here.

For your convince you can find information below. Be sure to check the provided resource to ensure that you are receiving the most updated information.

The below table was last updated on 21-Oct-2015

	2016	2015	2014
IRAs
IRA Contribution Limit	$5,500	$5,500	$5,500
IRA Catch-Up Contributions	1,000	1,000	1,000
IRA AGI Deduction Phase-out Starting at
Joint Return	98,000	98,000	96,000
Single or Head of Household	61,000	61,000	60,000
SEP
SEP Minimum Compensation	600	600	550
SEP Maximum Contribution	53,000	53,000	52,000
SEP Maximum Compensation	265,000	265,000	260,000
SIMPLE Plans
SIMPLE Maximum Contributions	12,500	12,500	12,000
Catch-up Contributions	3,000	3,000	2,500
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation	265,000	265,000	260,000
Elective Deferrals	18,000	18,000	17,500
Catch-up Contributions	6,000	6,000	5,500
Defined Contribution Limits	53,000	53,000	52,000
ESOP Limits	1,070,000 210,000	1,070,000 210,000	1,050,000 210,000
Other
HCE Threshold	120,000	120,000	115,000
Defined Benefit Limits	210,000	210,000	210,000
Key Employee	170,000	170,000	170,000
457 Elective Deferrals	18,000	18,000	17,500
Control Employee (board member or officer)	105,000	105,000	105,000
Control Employee (compensation-based)	215,000	215,000	210,000
Taxable Wage Base	118,500	118,500	117,000

Know Your IRA Contribution Limit

If you are enrolled in an IRA retirement plan chances are you need to know what your contribution limit is. Depending on your situation you may need to make adjustments to your plan. Ed4Ed has created this informative info graphic to help answer all your questions about IRA pension options. Feel free to print or bookmark this page if you feel that you will need to refer to the information provided at a later time.

401k vs. 403b

If you are a a government employee and getting ready to invest in a retirement plan there are a number of options that you might be considering.  Knowing which is best for you isn't always obvious.  After browsing through Ed4Ed you will notice a number of differences.  When considering a 401(k) and 403(b) plan here are some things to consider.

Both Plans

• Offer tax-advantage options. 
• Have the same contribution limits.
• Offer Roth options.
• Require participants be 59.5 to withdraw from plan.
• Grow tax-deferred.

Differences

• type of employer that is sponsoring the plan 
•  A 401k is often administered by one company.  In a 403b the organization also has no ownership of the 403b plan.
• 403b generally exempt from the Employee Retirement Income Security Act (ERISA).
  Additional Information here.

Picking a Plan

Regardless of what plan you decide to choose it is important to remember that having a retirement plan is an important step in safeguarding your future. Before you choose a plan know all of the ins and outs for each type of plan offered. Often times a financial planner can be consulted to help clarify which pension would work best to meet your needs.