The IRA contribution limitations for 2016 will be the same as they were in 2015. The contribution maximum will be the same for both standard and Roth IRAs, which will be $5,500. There is a $1,000 catch-up contribution if you are 50 or older.
How much can you contribute to a Roth IRA in 2016?
In 2016, you can contribute up to $5,500 to an IRA, plus an additional $1,000 if you’re 50 or older. The income restrictions for Roth IRAs will be $1,000 higher in 2016 than in 2015.
IRA contribution limits
In 2015, the maximum amount you can contribute to a conventional or Roth IRA is $5,500 (or 100% of your earned income, if less), which is the same as in 2014. For those aged 50 and up, the maximum catch-up contribution remains $1,000. (In 2015, you can contribute to both a regular and a Roth IRA, but your total contributions must not exceed these annual restrictions.)
Traditional IRA deduction limits for 2015
For 2015, the income thresholds for determining deductibility of traditional IRA contributions have been raised (for those covered by employer retirement plans). If your filing status is single/head of household and your income (“modified adjusted gross income,” or MAGI) is $61,000 or less (up from $60,000 in 2014), you can completely deduct your IRA contribution. If your MAGI is $98,000 or less (up from $96,000 in 2014), you can fully deduct your IRA contribution if you’re married and filing a joint return. If your MAGI is $183,000 or less (increased from $181,000 in 2014), you can fully deduct your IRA contribution if you’re not covered by an employer plan but your spouse is, and you file a joint return.
*If you aren’t covered by an employer plan but your spouse is, your deduction will be limited if your MAGI is between $183,000 and $193,000, and it will be eliminated if your MAGI is over $193,000.
Roth IRA contribution limits for 2015
The income thresholds for calculating how much money you can put into a Roth IRA have also been raised. If your MAGI is $116,000 or less in 2015, you can contribute the maximum $5,500 to a Roth IRA if your filing status is single/head of household (up from $114,000 in 2014). If your MAGI is $183,000 or less (increased from $181,000 in 2014), you can make a full contribution if you’re married and filing a joint return. (Again, donations cannot be more than 100% of your earned income.)
Employer retirement plans
The maximum amount you can contribute to a 401(k) plan (your “elective deferrals”) has increased for 2015. In 2015, the cap is $18,000 (increased from $17,500 in 2014). It also applies to 403(b), 457(b), and SAR-SEP plans, as well as the Federal Thrift Plan. In 2015, if you’re 50 or older, you can make catch-up contributions to these plans of up to $6,000 (up from $5,500 in 2014). (Some members in 403(b) and 457(b) plans are subject to special catch-up limits.)
Your total elective deferrals cannot exceed the yearly maximum ($18,000 in 2015 plus any relevant catch-up contribution) if you join in more than one retirement plan. This limit applies to deferrals to 401(k) plans, 403(b) plans, SIMPLE plans, and SAR-SEPs, but not to Section 457(b) plans. If you contribute to both a 403(b) and a 457(b) plan, for example, you can postpone the maximum cash limit to each plana total of $36,000 in 2015. (plus any catch-up contributions).
The maximum amount you can put into a SIMPLE IRA or SIMPLE 401(k) plan in 2015 is $12,500, up from $12,000 in 2014. The catch-up cap for people over 50 has also been raised to $3,000 (up from $2,500 in 2014).
In 2015, the maximum amount that can be put into a defined contribution plan (such as a 401(k) or profit-sharing plan) is $53,000 (up from $52,000 in 2014), plus age-50 catch-up payments. (This covers both your contributions and those of your employer.) If your employer offers more than one retirement plan, special requirements apply.)
Finally, for most plans in 2015, the maximum amount of compensation that can be considered in determining benefits has increased to $265,000, up from $260,000 in 2014; the dollar threshold for determining highly compensated employees (when 2015 is the look-back year) has increased to $120,000, up from $115,000 in 2014.
Broadridge Investor Communication Solutions, Inc. is not a financial, tax, or legal advisor. The data offered here is not tailored to any individual’s unique situation.
To the extent that this information relates to tax matters, it is not intended or written to be used by a taxpayer to avoid penalties that may be imposed by law, and it cannot be used by a taxpayer to avoid penalties that may be imposed by law.
Based on his or her unique circumstances, each taxpayer should obtain independent guidance from a tax professional.
We cannot guarantee the accuracy or completeness of these materials, which are offered for general information and educational purposes based on publicly accessible information from sources we believe to be credible.
The information in these publications is subject to change without notice at any moment.
How much can I contribute to an IRA?
For 2019, 2020, 2021, and 2022, the annual contribution cap is $6,000, or $7,000 if you’re 50 or older. For 2015, 2016, 2017, and 2018, the annual contribution cap is $5,500, or $6,500 if you’re 50 or older. Contributions to a Roth IRA may be limited based on your filing status and income. See IRA Contribution Limits for further information.
Is my IRA contribution deductible on my tax return?
If neither you nor your spouse are covered by a workplace retirement plan, you can deduct the entire amount.
If you or your spouse is covered by a retirement plan at work and your income exceeds certain thresholds, the amount you can deduct for contributions to a traditional IRA may be limited.
Can I contribute to a traditional or Roth IRA if I’m covered by a retirement plan at work?
Yes, even if you have an employer-sponsored retirement plan, you can contribute to a regular and/or Roth IRA (including a SEP or SIMPLE IRA plan). See the section on IRA Contribution Limits for further information. If your income exceeds certain thresholds and you or your spouse are enrolled in an employer-sponsored retirement plan, you may not be able to deduct your whole contribution. See the section on IRA deduction restrictions for further information.
I want to set up an IRA for my spouse. How much can I contribute?
You and your spouse can each contribute to your own separate IRAs if you file a joint return and generate taxable income.
Your combined contributions to your IRA and your spouse’s IRA cannot exceed your joint taxable income or the annual IRA contribution maximum multiplied by two, whichever is lower. It makes no difference whose partner made the money.
Other income limits apply to Roth IRAs and IRA deductions. See the IRA Contribution Limits and the IRA Deduction Limits for further information.
Can I contribute $5000 to both a Roth and traditional IRA?
You can contribute to both a regular and a Roth IRA as long as your total contribution does not exceed the IRS restrictions for any given year and you meet certain additional qualifying criteria.
For both 2021 and 2022, the IRS limit is $6,000 for both regular and Roth IRAs combined. A catch-up clause permits you to put in an additional $1,000 if you’re 50 or older, for a total of $7,000.
Can I have multiple Roth IRAs?
You can have numerous traditional and Roth IRAs, but your total cash contributions must not exceed the annual maximum, and the IRS may limit your investment selections.
What is the maximum Roth IRA contribution for 2018?
Contribution restrictions for various retirement plans can be found under Retirement Topics – Contribution Limits.
For the years 2022, 2021, 2020, and 2019, the total annual contributions you make to all of your regular and Roth IRAs cannot exceed:
For any of the years 2018, 2017, 2016, and 2015, the total contributions you make to all of your regular and Roth IRAs cannot exceed:
What is the Roth IRA income limit for 2018?
In 2018, the income thresholds for Roth IRA contributions will increase somewhat.
Do you file taxes as a single person or as the head of a household? If your modified adjusted gross income (MAGI) is less than $120,000, you can contribute the maximum amount to a Roth IRA. Once MAGI reaches $135,000 (up from $118,000 in 2017), the contribution amount will be phased out completely.
Is it possible for married couples to file jointly? If MAGI is less than $189,000, the maximum amount can be given, with the amount phasing out above $199,000 (up from $186,000 to $196,000 in 2017).
Can a 72 year old contribute to an IRA?
After reaching the age of 701/2, you can contribute to a traditional IRA under the SECURE Act. Traditional IRAs are still subject to Required Minimum Distributions (RMDs) at the age of 701/2 or 72, depending on your birthday. Roth IRAs might be a fantastic option to save if you have earned income in retirement.
What is the maximum contribution you can make to an IRA account in the year 2014?
In 2014, the maximum amount you can contribute to a regular or Roth IRA stays at $5,500. (or 100 percent of your earned income, if less). In 2014, the maximum catch-up payment for persons 50 and older is $1,000, which is the same as in 2013. (In 2014, you can contribute to both a regular and a Roth IRA, but your total contributions must not exceed this yearly limit.)
For 2014, the income thresholds for determining deductibility of conventional IRA contributions have been raised (for those covered by employer retirement plans). If you are a single person or a head of household, for example, you can deduct your IRA contribution in full “MAGI (modified adjusted gross income) must be less than $60,000 (increased from $59,000 in 2013). If your MAGI is $96,000 or less (up from $95,000 in 2013), you can fully deduct your IRA contribution if you’re married and filing a joint return. If your MAGI is $181,000 or less (increased from $178,000 in 2013), you can fully deduct your IRA contribution if you’re not covered by an employer plan but your spouse is, and you file a joint return.
*If you aren’t covered by an employer plan but your spouse is, your deduction is reduced if your MAGI is between $181,000 and $191,000, and it is completely removed if your MAGI is over $191,000.
The contribution limitations for Roth IRAs have also been raised. If your MAGI is $114,000 or less in 2014, you can contribute the maximum $5,500 to a Roth IRA if your filing status is single/head of household (up from $112,000 in 2013). If your MAGI is $181,000 or less (increased from $178,000 in 2013), you can make a full contribution if you’re married and filing a joint return. (Again, donations cannot be more than 100% of your earned income.)
The most you can contribute (your maximum contribution) “In 2014, the maximum contribution to a 401(k) plan (known as “elective deferrals”) continues at $17,500. The 403(b), 457(b), and SAR-SEP plans, as well as the Federal Thrift Savings Plan, are all subject to the maximum. In 2014, if you’re 50 or older, you can contribute up to $5,500 in catch-up contributions to these plans (unchanged from 2013). (Some members in 403(b) and 457(b) plans are subject to special catch-up limits.)
Your total elective deferrals cannot exceed the yearly maximum ($17,500 in 2014 plus any relevant catch-up contribution) if you join in more than one retirement plan. This limit applies to deferrals to 401(k) plans, 403(b) plans, SIMPLE plans, and SAR-SEPs, but not to Section 457(b) plans. You can defer the maximum dollar limit to each plana total of $35,000 in 2014if you engage in both a 403(b) and a 457(b) plan (plus any catch-up contributions).
In 2014, the maximum amount you can contribute to a SIMPLE IRA or SIMPLE 401(k) plan is $12,000, which is the same as in 2013. The $2,500 catch-up cap for people 50 and over stays intact.
In 2014, the maximum amount that can be put into a defined contribution plan (such as a 401(k) or profit-sharing plan) is $52,000 (increased from $51,000 in 2013), plus age-50 catch-up payments. (This covers both your contributions and those of your employer.) If your employer offers more than one retirement plan, special requirements apply.)
Finally, for most plans in 2014, the maximum amount of compensation that can be taken into account in determining benefits has increased to $260,000, up from $255,000 in 2013, while the dollar barrier for defining highly compensated employees has remained fixed at $115,000.
What is the income limit for Roth IRA contributions in 2020?
Your MAGI impacts whether or not you are eligible to contribute to a Roth IRA and how much you can contribute. To contribute to a Roth IRA as a single person, your Modified Adjusted Gross Income (MAGI) must be less than $139,000 for the tax year 2020 and less than $140,000 for the tax year 2021; if you’re married and filing jointly, your MAGI must be less than $206,000 for the tax year 2020 and $208,000 for the tax year 2021.
What is the highest adjusted gross income that a single individual may have and still make a maximum Roth IRA contribution in 2014?
The income limit for married couples to be eligible to contribute to a Roth IRA in 2014 has been reported at $181,000 and $191,000. Which of the two is correct?
The $181,000 is the highest modified adjusted gross income a married couple filing jointly can receive in 2014 while still being able to contribute the full $5,500 to a Roth IRA (or $6,500 if 50 or older at any time in 2014). If your joint income is $191,000 or more, you won’t be able to contribute to a Roth at all.
Can you contribute $6000 to both Roth and traditional IRA?
For 2021, your total IRA contributions are capped at $6,000, regardless of whether you have one type of IRA or both. If you’re 50 or older, you can make an additional $1,000 in catch-up contributions, bringing your total for the year to $7,000.
If you have both a regular and a Roth IRA, your total contributions for all accounts combined cannot exceed $6,000 (or $7,000 for individuals age 50 and over). However, you have complete control over how the contribution is distributed. You could contribute $50 to a standard IRA and the remaining $5,950 to a Roth IRA. You could also deposit the entire sum into one IRA.