Know your 2016 retirement plan contribution amounts

There are many benefits of participating in your employer’s retirement plan. For example, you can:
• decrease your taxable income by making pre-tax salary deferral contributions if allowed by the plan; and
• increase your retirement savings.

For 2016, the maximum annual salary deferral contributions allowed are:
• $18,000 to 401(k) or 403(b) plans
• $12,500 to SIMPLE plans

If you will be 50 or older by the end of 2016, your retirement plan may allow you to make additional catch-up contributions. For 2016, you can make catch-up contributions of:
• $6,000 to 401(k) or 403(b) plans
• $3,000 to SIMPLE plans

You can find additional information on both employer and employee contribution limits to common types of retirement plans in Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans).