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Thursday, October 29, 2015
IRS Announces 2016 Limits for IRAs and Pension Plans
The IRS announced the 2016 limits applying to IRAs and pension plans by issuing IRS news release 2015-119.
The Annual IRA contribution limits remain unchanged - $5,500 if the individual is younger than age 50 in 2015 or 2016, and $6,500 if he or she attains age 50 or older in 2015 or 2016
The maximum SEP contribution for 2016 is the same as for 2015: $53,000.
The SIMPLE IRA contribution limits are unchanged for 2016. The maximum elective deferral contribution amount is $12,500 for a person who is younger than age 50 in 2016 and $15,500 if he or she attains age 50 or older in 2016
The 401(k) elective deferral contribution limits also unchanged for 2016. The maximum elective deferral contribution amount is $18,000 for a person who is younger than age 50 in 2016 and $24,000 if he or she attains age 50 or older in 2016.
Only one of the compensation ranges applying to deductible IRA contributions increases for 2016.
The 2016 compensation range applying to a person whose filing status is married/joint return but not an active participant is $184,000 - $194,000 (up from $183,000 - $193,000).
Two of the compensation ranges applying to Roth IRA contributions will increase for 2016.
The 2016 compensation range applying to a person whose filing status is single, head of household or qualifying widower is $117,000 - $132,000 (up from $116,000 - $131,000).
The 2016 compensation range applying to a person whose filing status is married/joint return is $184,000 - $194,000 (up from $183,000 - $193,000).
Some of the compensation ranges applying to a savers tax credit also will increase.
CWF is revising its brochures and IRA Forms to incorporate the 2016 limits.