The Internal Revenue Service has announced the new employee retirement plan contribution limits for 2016. The announcement came on October 21, 2015, and employees need to be aware of the new rules applicable to 401(K)s, 403(b), 457 plans, Thrift Savings Plans, IRA limits, SEP IRA limits, and other tax-deferred retirement accounts.
Los Angeles employment law attorneys know that many companies no longer offer defined pension benefits to workers. Individual retirement accounts may be the only option employees have for planning ahead for the future. When employers do offer pensions, however, employers need to abide by rules and regulations set by the Employee Retirement Income Security Act (ERISA). These rules relate to everything from when pensions must vest to reserves employers must set aside to ensure they can fulfill their promises to workers.
New Employee Retirement Plan Contribution Limits