IRA contribution limits 

The max­i­mum amount you can con­tribute to a tra­di­tion­al IRA or Roth IRA in 2016 is $5,500 (or 100% of your earned income, if less), unchanged from 2015. The max­i­mum catch-up con­tri­bu­tion for those age 50 or old­er remains at $1,000. (You can con­tribute to both a tra­di­tion­al and Roth IRA in 2016, but your total con­tri­bu­tions can’t exceed these annu­al limits.)

 

 

Traditional IRA deduction limits for 2016

The income lim­its for deter­min­ing the deductibil­i­ty of tra­di­tion­al IRA con­tri­bu­tions in 2016 are unchanged, except for one instance: if you’re not cov­ered by an employ­er plan but your spouse is, and you file a joint return, you can ful­ly deduct your IRA con­tri­bu­tion in 2016 if your MAGI is $184,000 or less (up from $183,000 in 2015).

2016 Traditional IRA Limits

*If you’re not cov­ered by an employ­er plan but your spouse is, your deduc­tion is lim­it­ed if your MAGI is $184,000 to $194,000, and elim­i­nat­ed if your MAGI exceeds $194,000.

 

 

Roth IRA contribution limits for 2016

The income lim­its for deter­min­ing how much you can con­tribute to a Roth IRA have increased for 2016. If your fil­ing sta­tus is sin­gle or head of house­hold, you can con­tribute the full $5,500 to a Roth IRA in 2016 if your MAGI is $117,000 or less (up from $116,000 in 2015). And if you’re mar­ried and fil­ing a joint return, you can make a full con­tri­bu­tion in 2016 if your MAGI is $184,000 or less (up from $183,000 in 2015). (Again, con­tri­bu­tions can’t exceed 100% of your earned income.)

2016 Roth IRA Contribution Limits

 

 

Employer retirement plans

All of the sig­nif­i­cant employ­er retire­ment plan lim­its for 2016 remain unchanged from 2015. The max­i­mum amount you can con­tribute (your “elec­tive defer­rals”) to a 401(k) plan in 2016 is $18,000. This lim­it also applies to 403(b), 457(b), and SAR-SEP plans, as well as the Fed­er­al Thrift Plan. If you’re age 50 or old­er, you can also make catch-up con­tri­bu­tions of up to $6,000 to these plans in 2016. (Spe­cial catch-up lim­its apply to cer­tain par­tic­i­pants in 403(b) and 457(b) plans.)

If you par­tic­i­pate in more than one retire­ment plan, your total elec­tive defer­rals can’t exceed the annu­al lim­it ($18,000 in 2016 plus any applic­a­ble catch-up con­tri­bu­tion). Defer­rals to 401(k) plans, 403(b) plans, SIMPLE plans, and SAR-SEPs are includ­ed in this aggre­gate lim­it, but defer­rals to Sec­tion 457(b) plans are not. For exam­ple, if you par­tic­i­pate in both a 403(b) plan and a 457(b) plan, you can defer the full dol­lar lim­it to each plan–a total of $36,000 in 2016 (plus any catch-up contributions).

The amount you can con­tribute to a SIMPLE IRA or SIMPLE 401(k) plan in 2016 is $12,500, and the catch-up lim­it for those age 50 or old­er remains at $3,000.

2016 Employer retirement Plan Limits

 

Note: Con­tri­bu­tions can’t exceed 100% of your income.

The max­i­mum amount that can be allo­cat­ed to your account in a defined con­tri­bu­tion plan (for exam­ple, a 401(k) plan or prof­it-shar­ing plan) in 2016 is $53,000, plus age-50 catch-up con­tri­bu­tions. (This includes both your con­tri­bu­tions and your employ­er’s con­tri­bu­tions. Spe­cial rules apply if your employ­er spon­sors more than one retire­ment plan.)

Final­ly, the max­i­mum amount of com­pen­sa­tion that can be tak­en into account in deter­min­ing ben­e­fits for most plans in 2016 is $265,000, and the dol­lar thresh­old for deter­min­ing high­ly com­pen­sat­ed employ­ees (when 2016 is the look-back year) is $120,000, both unchanged from 2015.