From Chuck Weber, your Veteran Service Officer...
The IRS has different
contribution limits for different types of retirement accounts, and
keeping up with them can bechallenging. If you are 50 or
older, you are eligible to make additional catch-up contributions,
adding to the confusion.Below are the limits on 2015
retirement plan contributions for various plan types. You can make
contributions forindividual retirement accounts, or IRAs, all
the way up to the tax-filing deadline (for most taxpayers) of April 18,2016.
Provided are the 2016 amounts to help in your retirement planning.
Roth IRA contribution earning limits.· In 2015, the phase out range of income limits for making a Roth IRA contribution is between $183,000 and$193,000 for jointly filing married couples; and $116,000 to $131,000 for single taxpayers.111· If your income falls in those ranges for your filing status, the amount you can contribute to a Roth IRA isreduced. Make more than the top income amount in each range and you cannot put any money into a RothIRA.· For the 2016 tax year, the Roth IRA income contribution ranges are increased a bit. Married couples filingjointly face the phase outs when their income is between $184,000 and $194,000. The earning range for singletaxpayers is $117,000 to $132,000.
Saver's credit income limits. Some filers may be able to claim the saver's credit, also known as the retirementsavings contributions credit, but only if they don't make too much money. This tax break for low- and moderate incomeworkers can be claimed on 2015 tax returns as long as a single filer's income is no more than $30,500; nomore than $45,750 for a head of household; or no more than $61,000 for married couples filing jointly. For the 2016tax year, the saver's credit is available to single taxpayers with income up to $30,750; head-of-household filers makingup to $46,125; or jointly filing married taxpayers with income up to $61,500.
|Source: Bankrate.com | Kay Bell | November 12, 2016|
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