2016 Cost of Living Adjustments

2016 Tax Data You Should Know

The tax law places limits on contributions to retirement plans and individual retirement arrangements.  These limits are adjusted annually for cost-of-living increases, but for 2016 most contribution limits are unchanged.

For example, the elective deferral limit for 401(k) plans remains at $18,000, the compensation cap for qualified retirement plans remains at $265,000, and the contribution limit for IRAs remains at $5,500.  Many other limits will remain unchanged as well.

NOTE: The Wheeler Group LLC agents or employees do not give tax or legal advice.  Clients must consult their own tax or legal advisors regarding their individual situations.

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