In 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-deferred 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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