--- title: 2016 Retirement Plan Contribution Limits description: A look at the newly announced IRS retirement plan contribution limits. --- [![Multnomah Group](https://blog.multnomahgroup.com/hs-fs/hubfs/canoe/logo-color.png?width=415&name=logo-color.png "Multnomah Group")](https://www-multnomahgroup-com.sandbox.hs-sites.com) [Careers](https://www.multnomahgroup.com/careers) Follow Us: [![Contact Us](https://no-cache.hubspot.com/cta/default/309123/8ea0f5b0-6d32-4c0c-be03-e645ed736c36.png)](https://cta-redirect.hubspot.com/cta/redirect/309123/8ea0f5b0-6d32-4c0c-be03-e645ed736c36) # 2016 Retirement Plan Contribution Limits October 21, 2015 On October 21, 2015, the IRS announced1 dollar limitations for pension plans and other retirement-related items for tax year 2016. IRC Section 415 requires these limits to be adjusted annually for any cost-of-living increases. However, the majority of pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. Most notably: - Deferral limit for 401(k)/403(b) plans is $18,000 - Deferral limit for a SIMPLE 401(k) plan is $12,500 - Catch-up contribution limit for those age 50 and over, if permitted, is $6,000 - $3,000 for SIMPLE 401(k) plans - Overall limit on contributions (including the total of elective deferrals, employer matching contributions, employer non-elective contributions, and allocations of forfeitures) cannot exceed the lesser of: - 100% of the participant's compensation, or - $53,000 ($59,000 including catch-up contributions) For additional information, see: [2016 IRS Pension Plan Limits](https://www.multnomahgroup.com/2016-irs-limits) 1[https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations;-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016](https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations;-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016) ### Subscribe To Our Blog [Contact](https://www.multnomahgroup.com/about-us/contact-us) [(888) 559-0159](tel:8885590159) [1155 SW Morrison Street, Ste 501, Portland, OR 97205](https://www.google.com/maps/place/1155+SW+Morrison+St+Suite+501,+Portland,+OR+97205) © 2026 Copyright Multnomah Group Inc.