2016 Tax Year Limits on 401k and Retirement PlansSubmitted by Canty Financial Management on February 19th, 2016
The team at Canty Financial Management wanted to give you the latest information about 401k and Retirement Plan Limits for the 2016 tax year.
According to a post found at http://401khelpcenter.com, ""On October 21, 2015, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016. In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds."
The article also included highlights of limitations that changed from 2015 to 2016:
"For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $184,000 and $194,000, up from $183,000 and $193,000.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000. For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
The AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,500 for married couples filing jointly, up from $61,000; $46,125 for heads of household, up from $45,750; and $30,750 for married individuals filing separately and for singles, up from $30,500."
There is an easy to read chart to follow and a downloadable PDF version right here: http://www.401khelpcenter.com/2016_401k_plan_limits.html#.Vsc6LPkrK01
Canty Financial Management can help with your 401k questions and rollovers. Contact us in our Ballston Spa, NY or Naples, FL offices today!