Latest Cost Of Living Allowance (COLA) Increases
| Limitation | 2016 | 2015 | 2014 |
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| 401(k) and 403(b) Deferrals | $18,000 | $18,000 | $17,500 |
| 457 Deferrals | $18,000 | $18,000 | $17,500 |
| Catch-Up Contributions 1 | $6,000 | $6,000 | $5,500 |
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| Highly Compensated Employee (HCE) 3 | $120,000 | $120,000 | $115,000 |
| Compensation Limit - 401(a)(17) | $265,000 | $265,000 | $260,000 |
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- 1 $6,000 additional catch-up for participants age 50 or over by 12/31/2016 if plan allows
- 2 Reduced for retirement prior to age 62
- 3 The $120,000 compensation limit will be used to determine HCE's for plan years beginning in 2015
- 4 Effective in 2013, an additional Medicare tax of 0.9% applies to wages and self-employment income above a certain threshold (generally $200,000 if single and $250,000 if married)
NOTE: In 2016, a Highly Compensated Employee will be any employee who earned over $120,000 in 2015 or who was a 5% owner in either 2015 or 2016, unless a special election was made to only include the top 20% of employees as Highly Compensated Employees.