Roth IRA Contribution & Deduction Limits ~ 2016
How to figure the amount of your reduced Roth IRA contribution:
According to the IRS:
If the amount you can contribute must be reduced, please use the following steps to figure your reduced contribution limits:
See Publication 590, Individual Retirement Accounts (IRAs), for a worksheet to figure your reduced contribution and speak with your tax and/or legal advisor prior to making any tax related decisions. Please review Publication 590-A (2016 when available), for specific issues related to Contributions to Individual Retirement Arrangements (IRAs) for use in preparing 2016 Returns. The current link shown is for 2015.
Roth IRA Contribution Limits ~ 2016 & 2017
You may make an eligible contribution for your 2016 Traditional or Roth IRA at any time prior to the 2016 IRS tax filing deadline which is April 17, 2017. (Your account must be funded or have proof of postmark by this date!)
"Total" means your total contributions to all of your traditional and Roth IRAs. You cannot exceed the total amount/contribution limit regardless of how many IRAs that you have or the type/types of IRA(s) that you may have.
*Or your taxable compensation for the year.
** Effective for tax year 2002 and beyond, for participants who are eligible to make an IRA contribution and have attained the age of 50 before the end of the taxable year, the participant can make a "catch-up" contribution in addition to the normal contribution amount as shown in the table above. The catch-up contribution was $500 from 2002-2005. For the year 2006 and beyond, the catch-up contribution limit will be $1000. The maximum contribution cannot exceed 100% of actual compensation. Learn more about COLA Increases for Dollar Limitations on Benefits and Contributions from the IRS.
Please note that the IRA contribution limit does not apply to:
Deductibility limits can be confusing and tax laws are frequently changing. It is always best to review your specific situation and/or circumstances with a qualified tax advisor.
Open an IRA online or call us at 1-800-50-PLACE or 1-919-719-7200 to speak with an experienced retirement specialist to help you rollover your old retirement account or help you start planning for retirement today!
Call us today at 1-800-50-PLACE (1-800-507-5223, 919-719-7200) for more information!
(Please be sure to check with your tax and/or legal advisor prior to making any contributions, withdrawals or other changes to your retirement account. Place Trade Financial, Inc. does not offer tax or legal advice. Information provided by Place Trade is for educational purposes and should not be considered as tax or legal advice under any circumstances.)
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