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Roth IRA Contribution & Deduction Limits ~ 2016

 

          Roth IRA Limits 2015   Traditional IRA Limits 2015   Traditional IRA Limits 2016

2016 Traditional or Roth IRA IRS Tax Filing Deadline:

You may make a contribution for your 2016 Traditional or Roth IRA at any time prior to the 2016 IRS tax filing deadline which is on Monday, April 17, 2017. 

  • April 15, 2017 falls on Saturday, therefore the due date for making contributions for 2016 to your IRA is Monday, April 17, 2017. 
    MA & ME residents may make prior year 2016 IRA contributions thru Tuesday, April 18, 2016 due to the Patriots' Day holiday!
  • The 2017 tax year IRA contribution and filing deadline is Monday, 04/16/2018. For residents of MA & ME: Tuesday, April 18, 2018 due to the Patriots' Day holiday.
  Roth IRA Contribution Limits 2016 & 2017   Learn about Roth IRAs

   

Can I contribute to a Roth IRA?  

Although Roth IRA CONTRIBUTIONS ARE NOT DEDUCTIBLE, you must be eligible to make a contribution. Use the table below to see if you may be eligible to contribute to a Roth IRA. (This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose. Source: irs.gov) Please be sure to consult with your tax and/or legal advisor prior to making IRA contributions.

 

Will your 2016 contribution to a Roth IRA be affected by the amount of your modified AGI?

If You Have Taxable Compensation and Your Filing Status is:

And Your Modified AGI Is:

Then:

Married filing jointly or qualifying widow(er) 

Less than $183,000

you can contribute up to the limit.

at least $184,000 but less than $194,000

the amount you can contribute is reduced.

$194,000 or more

you cannot contribute to a Roth IRA.

Married filing separately and you lived with your spouse at any time during the year

 zero (-0-)

you can contribute up to the limit.

 more than zero (-0-) but less than $10,000

 the amount you can contribute is reduced.

 $10,000 or more

you cannot contribute to a Roth IRA.

Singlehead of household, or married filing separately and you did not live with your spouse at any time during the year

less than $117,000

you can contribute up to the limit.

at least $117,000 but less than $132,000

the amount you can contribute is reduced.

$132,000 or more

you cannot contribute to a Roth IRA.

 

 

 

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:

  1. Start with your modified AGI.
  2. Subtract from the amount in (1):Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).
    1. $184,000 if filing a joint return or qualifying widow(er),
    2. $-0- if married filing a separate return, and you lived with your spouse at any time during the year, or
    3. $117,000 for all other individuals.
  3. Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).
  4. Multiply the maximum contribution limit (before reduction by this adjustment and before reduction for any contributions to traditional IRAs) by the result in (3).
  5. Subtract the result in (4) from the maximum contribution limit before this reduction. The result is your reduced contribution limit.

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!)

                       

 

Under Age 50  

 

Total

Under Age 50  

Over Age 50

Additional 

 Total

Over Age 50

2016* **

$5,500

Catch-up Contribution

$1,000

$6,500

2017* **

$5,500

Catch-up Contribution

$1,000

$6,500

                                                                                                                                                                                                                                                                             Source: irs.gov

"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!  

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(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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