IRS Limits Recently Announced for Benefits and Other Tax Provisions for 2016 The IRS recently announced cost-of-living adjustments for various provisions affecting employee benefit plans, savings programs and other tax provisions for the tax year 2016. 2015 2016 Social Security Wage Base $118,500 $118,500 RETIREMENT PLAN LIMITS Limit on Elective Deferrals Limit on Catch-Up Deferrals Annual Contribution Limit for Defined Benefit Plans Contribution Limit for Defined Contribution Plans Annual Compensation Limit Highly Compensated Employee Key Employee $18,000 $6,000 $210,000 $53,000 $265,000 $120,000 $170,000 $18,000 $6,000 $210,000 $53,000 $265,000 $120,000 $170,000 $6,600 $13,200 $6,850 $13,700* $1,300 $2,600 $1,300 $2,600 $6,450 $12,900 $6,550 $13,100 $3,350 $6,650 $1,000 $2,550 $5,000 $3,350 $6,750 $1,000 $2,550 $5,000 $250 $130 $2.08 $44 $255 $130 $2.17 $27 HEALTH AND WELFARE PLAN LIMITS ACA Out-Of-Pocket Limit (non-grandfathered self-insured and large group health plans) Individual Coverage Family Coverage High-Deductible Health Plan Deductible Individual Coverage Family Coverage High-Deductible Health Plan Out-Of-Pocket Maximum Individual Coverage Family Coverage Health Savings Account Contribution Individual Coverage Family Coverage Catch-Up Contributions Flexible Spending Account Contribution Dependent Care Spending Account Contribution Qualified Transportation Fringe Benefit Qualified Parking Mass Transit and Commuter PCORI Fee Transitional Reinsurance Fee *  ew HHS requirement to apply the self-only limit maximum to all individuals, including those enrolled in other than self-only coverage. N For reference, see IRS Revenue Procedure 2015-30 and 2015-53, IR-2015-118, IRS Notice 2015-60, Social Security Administration Contribution and Benefit Base Press Release, HHS Notice of Benefit and Payment Parameters 2016. For more information regarding these or other changes in the law affecting your employee benefits, please contact: Sarah (Sally) Lockwood Church Dan S. Brandenburg Paul A. Kasicky Kevin A. Wiggins Dasha G.

Brockmeyer Partner and Chair, Employee Benefits and Executive Compensation Practice •schurch@saul.com • 412.209.2529 Partner • dbrandenburg@saul.com • 202.295.6644 Special Counsel • pkasicky@saul.com • 412.209.2530 Special Counsel • kwiggins@saul.com • 412.209.2525 Associate • dbrockmeyer@saul.com • 412.209.2538 . .