IRS Announces Various Tax Benefit Increases for 2016

For tax year 2016, the IRS recently announced many annual inflation adjustments. IRS Revenue Procedure 2015-53 provides details about these amounts.

Because inflation is low, many of the amounts for 2016 will not change from 2015. For example, the elective deferrals to 401(k) and 403(b) plans will remain $18,000 next year. Other retirement plan contribution limits also will not change.

Recently, the Social Security Administration announced that the Social Security wage base (the amount of earnings subject to taxation) will remain at $118,500 for 2016, the same as 2015.

Here are some of the other tax amounts for 2016, as compared with 2015.