On October 21st, 2015, the Internal Revenue Service (IRS) announced cost of living adjustments (COLA) affecting dollar limitations for pension plans and other retirement-related items for tax year 2016.
In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds.
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Updates | October 23, 2015
IRS Announces Cost of Living Increases for 2016
By Winthrop Wealth
On October 21st, 2015, the Internal Revenue Service (IRS) announced cost of living adjustments (COLA) affecting dollar limitations for pension plans and other retirement-related items for tax year 2016.
In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds.
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