Retirement Plans

2016 Retirement Planning Key Numbers

» Plan Selection
» Roth and Simple IRA
» Rollover IRA

 « Return to Products

Withdrawals prior to age 59 1/2 may be subject to penalties and taxes on some plans.

Employee contribution limits to employer plans*

401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs (includes Roth contributions to these plans); annual catch-up contribution (age 50+)

$18,000; $6,000

SIMPLE 401(k) and SIMPLE IRA plans; annual catch-up contribution (age 50+)

$12,500; $3,000

IRA contribution limits**

Traditional and Roth IRAs (combined);  annual catch-up contribution (age 50+)

$5,500; $1,000

* Lesser of these limits or 100% of participant’s compensation.

** Lesser of these limits or 100% of earned income.

Modified adjusted gross income (MAGI) phaseout limits for deductible contributions to a traditional IRA

(affects taxpayers covered by an employer-sponsored retirement plan)

Single or head of household

$61,000 to $71,000

Married filing jointly when the spouse who makes the contribution is covered by a workplace plan

$98,000 to $118,000

Married filing jointly when the spouse who makes the contribution is not covered by a workplace plan but the other spouse is covered

$184,000 to $194,000

Married filing separately

Up to $10,000

MAGI phaseout limits to contribute to a Roth IRA

Single or head of household

$117,000 to $132,000

Married filing jointly

$184,000 to $194,000

Married filing separately

Up to $10,000