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The IRS has released the cost-of-living adjustments affecting dollar limitations for retirement and health insurance plans
The IRS has released the cost-of-living adjustments (COLA) affecting dollar limitations for Individual Retirement Accounts (IRAs), defined contribution and other retirement-related items for tax year 2016. In general, most limits will remain unchanged for 2016 because the increase in the cost-of-living index did not meet the threshold that would trigger their adjustment.
The table below compares both the retirement plan and health insurance plan limits for 2014 through 2016, with items that have changed for 2016 asterisked. Further guidance can be found on the IRS website.
IRA contribution limit
IRA catch-up contributions for ages 50+
IRA AGI Deduction Phase-Out Starting at:
Single or Head of Household
IRA contributor not covered by a workplace retirement plan, but filing joint return with spouse who is
AGI Phase-Out for Contributions to Roth IRA:
401(k), 403(b), 457(b)(2) elective deferrals
401(k), 403(b) "catch-up" contributions for ages 50+
SIMPLE plan elective deferral
SIMPLE "catch-up" contributions for ages 50+
Defined contribution plan maximum
Defined benefit plan maximum
Maximum includible compensation
Highly compensated employee
FICA taxable wage base
Health Insurance Plans
Health Savings Account (HSA) contribution limit -- individual
HSA contribution limit -- family
HSA "catch-up" contributions for ages 55+
Minimum deductible for high-deductible health plan (HDHP) -- individual
Minimum deductible for HDHP -- family
Maximum out-of-pocket for HDHP -- individual
Maximum out-of-pocket for HDHP -- family
Flexible Spending Account (FSA) contribution limit
*Represents change from 2015.
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