Retirement Plan Limits for 2016

Roth:

  • Remains the same at $5,500 (catch up contribution of $1,000)
  • The phase-out to contribute to a Roth has increased for Single filers to $117,000 – $132,000
  • For Married Filing Joint the phase out has also increased to $184,000 – $194,000

Traditional IRA:

  • Remains the same at $5,500 (catch up contribution of $1,000)
  • Phase out range for Single filers covered by Employer Plan stays the same at $61,000 – $71,000
  • Married couples filing Joint covered by Employer Plan stay the same at $98,000 – $118,000
  • Joint filers with spouse covered by Employer Plan has increased to $184,000 – $194,000

401K:

  • Remains the same at $18,000 (catchup contribution of $6,000)

SEP IRA Contributions:

  • Company may contribute up to 25% of compensation or $53,000 (whichever is less)
  • Compensation limit is 20% for Sole Proprietors

Simple IRA Contributions:

  • Salary deferral up to $12,500
  • $3,000 catch-up contribution if age 50 or older
  • Employer match (up to 3%) or non elective contribution (2%)

Social Security Cost of Living:

  • NO CHANGE! Social Security benefits will remain the same for 2016!