Taxes

IRA 2016 Pension Plan, 401(k) Contribution Limits

Last month the IRS announced 2016 Pension Plan / 401(k) Contribution Limits.  irs 2016 limits401k elective deferrals remain unchanged at $18,000.  As well, catch-up contributions allowed for those 50 and older are unchanged at $6,000.

Several of the phase-out limits were adjusted up.  For IRA contributors not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out between $184,000 and $194,000 (up $1,000 from 2015).  The AGI phase-out for ROTH IRA contributions is $184,000 to $194,000 for married couples filing jointly (or $117,000 to $132,000 for single filers).

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