Tax and Money Tip this Week:
IRA and Retirement Plan Limits for 2016
December 2, 2015 | No. 261

Source: Broadridge Advisor Solutions

Many IRA and retirement plan limits are indexed for inflation each year. On October 21, 2015, the IRS issued the inflation-adjusted numbers for 2016, and most remain unchanged from 2015.

The maximum IRA contribution for 2016 is $5,500, unchanged from 2015 (the catch-up limit also remains unchanged at $1,000). However, certain phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have increased for 2016.

Employer retirement plan limits remain generally unchanged from 2016. For example, the elective deferral limit for 401(k), 403(b), and 457(b) plans remains at $18,000, and the catch-up limit remains at $6,000. Similarly, the maximum amount that can be contributed to a defined contribution plan in 2016 is $53,000, unchanged from 2015.
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Mark Vitek, CPA/PFS, CFP®
…until next week.

Mark Vitek, CPA/PFS, CFP®
…until next week.