The Internal Revenue Service (IRS) has announced its 403(b) retirement plan limits for 2016, as shown below.
- Defined Contribution Plan Annual Addition Limit (employer and employee combined): Increases to $53,000
- Compensation Limit for Determining Benefits: Increases to $265,000
The 2016 retirement plan indexed limits will automatically adjust to the limits set by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA).
- Personal Contributions:
- If under age 50 for the duration of 2016: $18,000
- If age 50 and over during 2016: $24,000 Viewing and Changing Contributions »
- Compensation Determining Highly Compensated Employees: $120,000
- Elective Salary Deferral for 403(b) Tax-Deferred Annuity Retirement Plan: $18,000
- Age 50+ Catch-Up Limit for 403(b) Tax-Deferred Annuity Retirement Plan: $6,000
- “15-Year Catch-Up” Provision: $3,000 per year with a $15,000 lifetime limit. (Available to faculty and staff with 15 or more years of service with the University, who have not taken advantage of the contribution limits in the past.)