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Chart: IRA Contribution Limits for 2016

ira-contributions-limit-2016.pngIn 2016, you get three extra days to file your federal tax return. Depending on your plan type, you can grow your investment earnings on a tax-free or tax-deffered basis. If you have yet to contribute to your self-directed IRA, consider doing so before the tax deadline in order to maximize your tax benefits. One strategy to make the most of your retirement savings in 2016 is to start making these contributions early in the year, Don't forget: the tax deadline is April 18, 2016! Below is a chart with some helpful numbers for contributions this year:

 

 



IRA Contribution Limits for 2015 and 2016

Individual Plans

 

Traditional IRA and Roth IRA Contribution Limits 2015 2016
Up to age 50 $5,500 $5,500
Catch-Up Contributions Age 50+  $1,000 $1,000
Total Contribution if Over the Age of 50+  $6,500 $6,500

 

Roth IRA Contribution Limits MAGI Phase-Out Ranges 2015 2016
Single Individuals $116,000-$131,000 $117,000 - $132,000
Married, Filing a Joint Tax Return  $183,000-$193,000 $184,000 - $194,000
Married, Filing Separate Tax Returns  $0-$10,000 $0 - $10,000

 

Traditional IRA Modified Adjusted Gross Income Limits 2015 2016
Single Active Participant  $61,000-$71,000 $61,000 - $71,000
Married Active Participant, Filing Joint Tax Return $98,000-$118,000 $98,000 - $118,000
Married Active Participant, Filing Separate Tax Return $0-$10,000 $0 - $10,000
Spouse of an Active Participant  $183,000-$193,000 $184,000 - $194,000

 

Small Business Plans

 

SIMPLE IRA Contribution Limits 2015  2016
Employee Elective Deferrals $12,500 $12,500
Catch-Up Elective Deferral Contribution Age 50+  $3,000* $3,000*
Your employer can elect from two different contribution methods. Check with your employer which option they have chosen. Employer contributions are in addition to your elective deferrals.

 

SEP IRA Contribution Limits 2015 2016
SEP Employer Contribution Limits Up to 25% of compensation, with a maximum of $53,000* Up to 25% of compensation, with a maximum of $53,000*
SEP Current Year Compensation Limits $600 $600

 

Individual(k) Plan and Individual Roth IRA 2015 2016
>Employer Contributions >Up to $53,000 Up to $53,000
Employee Elective Deferrals Up to $18,000 Up to $18,000
Catch-Up Elective Deferral Contribution Age 50+ Up to $6,000 Up to $6,000
The employer can contribute up to 25% of your compensation up to the maximum limit.  Employer contributions and employee elective deferrals in aggregate may not exceed this limit. Compensation limits and deductibility apply so contact your employer for further information.

 

Other Tax-Advantaged Plans

 

Coverdell ESA Contribution Limits 2015 2016
Per year until the child is age 18, unless the child
  has special needs.
$2,000 $2,000

 

Health Savings Accounts 2015 2016
High Deductibles/Out of Pocket Limits
Single Coverage - Minimum/Maximum $1,300/$6,450 $1,300/$6,550
Family Coverage-Minimum/Maximum $2,600/$12,900 $2,600/$13,100
Health Savings Account Contribution Limits
Single Coverage $3,350 $3,350
Family Coverage $6,650 $6,750
Plus $1,000 catch-up contribution if you are age 55+


The Entrust Group does not offer investment, tax, financial or legal advice to clients. Individuals who believe they need advice should consult with qualified professional(s) licensed in that area. This section of our website is devoted to providing clients and potential client with educational information. It is in no way intended as tax advice.

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