Traditional IRA Contribution and Deduction Limits ~ 2016
Why Should You Open an IRA? Why Should I Open an IRA?
Are you eligible to make a tax deductible IRA contribution?
Find out if you can make a tax deductible contribution to your IRA by based on your personal situation. In addition to the effect of modified AGI on deductible contributions you must consider whether or not either you (or your spouse) are covered by a retirement plan at work, how you file you taxes and more. Be sure to review your personal situation with your tax advisor prior to making any tax related decisions or investments.
If You ARE Covered by a Retirement Plan at Work
If you are covered by a retirement plan at work, use this table to help determine if your modified AGI affects the amount of your deduction.
2016 Traditional IRA Contribution and Deduction Limits - Effect of Modified AGI on IRA Contributions
If You are NOT Covered by a Retirement Plan at Work
If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.
Traditional IRA Contribution Limits ~ 2015 & 2016
"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!
*MA & ME residents may make prior year 2016 IRA contributions thru Tuesday, April 18, 2017.
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. What is an IRA?
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Learn about IRAs, Traditional IRAs, Roth IRAs, Minimize taxes with qualified contributions to your retirement account. Make "Catch-up contributions" if you are over 50. Learn about income limits/deduction limits for Single, Head of household, Qualified widow or widower, married filing jointly, married filing separately, spouse not covered by plan at work, spouse, no plan at work, plan at work, lived with spouse, agi, adjusted gross income, ira deduction, full deduction, partial deductions and so much more!