401(k) deferral
$18,000
Tax year 2016
2016 401(k) & IRA Contribution Limits
$18,000 401(k) · $5,500 IRA · $6,000 age-50+ catch-up.
By Sammy S. · Founder · AuthorUpdated for 2016
50+ catch-up
$6,000
IRA limit
$5,500
§415(c) combined
$53,000
What stood out in 2016
Most employee limits unchanged from 2015.
Versus 2015: 401(k) deferral $18,000 → $18,000; IRA $5,500 → $5,500. Compare 2015 vs 2016
2016 contribution limits in detail
401(k) / 403(b) / 457(b)
- Elective deferral (§402(g))
- $18,000
- Age 50+ catch-up
- $6,000
- Total under 60 / 64+
- $24,000
- Ages 60–63 catch-up
- N/A
- §415(c) annual additions
- $53,000
- Compensation cap
- $265,000
IRA & SIMPLE
- IRA limit (Trad + Roth)
- $5,500
- IRA age-50+ catch-up
- $1,000
- IRA total at 50+
- $6,500
- SIMPLE elective
- $12,500
- SIMPLE age-50+ catch-up
- $3,000
Education
Putting 2016 limits to work
If you had a workplace plan
Elective deferrals could total up to $18,000 ($24,000 at age 50+). Employer match sat on top of that until the combined §415(c) cap of $53,000.
If you also funded an IRA
You could still contribute up to $5,500 ($6,500 at 50+) across Traditional and Roth IRAs combined—separate from the 401(k) deferral limit—subject to earned income and phaseout rules for that year.
Compensation cap reminder
Plans generally could not count compensation above $265,000 when computing contributions under §401(a)(17). That matters for highly paid employees and owner plans even when the elective-deferral limit is the headline number.
SIMPLE vs regular 401(k)
SIMPLE elective room was $12,500 (+$3,000 at 50+). If your employer offered a SIMPLE instead of a regular 401(k), use those lower caps—not the §402(g) figure above.
Plan with current-year tools
These 2016 figures are historical IRS reference amounts. Live calculators use current limits.
Related years
FAQs for 2016
$18,000 elective deferral, plus $6,000 age-50+ catch-up (total $24,000).
$5,500 under 50; $6,500 at age 50+ (includes $1,000 catch-up). Traditional and Roth share this cap.
$53,000 for total annual additions (employee + employer) to defined-contribution plans. The compensation cap was $265,000.
$12,500 elective contribution, plus $3,000 age-50+ catch-up for SIMPLE IRA / SIMPLE 401(k) plans.
No. The SECURE 2.0 higher catch-up for ages 60–63 begins in 2025. In 2016, age-50+ participants used the regular $6,000 catch-up.
Yes. Workplace elective deferrals up to $18,000 (plus catch-up if eligible) did not reduce the separate IRA limit of $5,500. Roth IRA contributions still faced AGI phaseouts; Traditional IRA deductions could phase out if you had a workplace plan.
No. Match did not count against the $18,000 §402(g) limit, but employee + employer amounts together could not exceed the $53,000 §415(c) cap.
Most employee limits unchanged from 2015. 401(k) deferral: $18,000 → $18,000. IRA: $5,500 → $5,500. Catch-up: $6,000 → $6,000.
Open the 2015 vs 2016 compare page for deferral, IRA, catch-up, SIMPLE, and §415(c) deltas in one table.
2017 401(k) deferral $18,000; IRA $5,500. See the 2017 profile or compare 2016 vs 2017.
These 2016 amounts are historical IRS reference data. The 401(k) match and Roth IRA calculators use current-year limits for estimates.
IRS COLA table (2016). See also the IRS COLA page for plan-type limits.