Contribution Limits for Retirement Accounts and Tax Rates

By David Chang

Part of a SMART investing strategy is investing in tax-deferred accounts. Below are the updated contribution limits for your retirement accounts for 2015. Make sure to take advantage of the tax benefits! Click here for more tax information, strategies, and benefits.

Type of Account

2016

2015

Traditional or Roth IRA $5,500 $5,500
Roth IRA – Phased out range and maximum income limit for singles and heads of household $117,000 to $132,000 $116,000 to $131,000
Roth IRA – Phased out range and maximum income limit for married couples filing jointly $184,000 to $194,000 $183,000 to $193,000
Traditional IRA & Covered By Workplace Retirement Plan
Phased out deductions for singles and heads of households
$61,000 to $71,000 $61,000 to $71,000
Traditional IRA & Covered By Workplace Retirement Plan
Phased out deductions for married couples filing jointly
$98,000 to $118,000 $98,000 to $118,000
Traditional IRA – Phased out deductions for singles and heads of households $184,000 to $194,000 $183,000 to $193,000
Traditional IRA – Phased out deductions for married couples filing jointly $98,000 to $118,000 $98,000 to $118,000
Roth or Traditional IRA: Catch-Up Contributions over 50 $1,000 $1,000
SEP IRA (Self-Employed), Solo 401(k): or 25% of salary, whichever is smaller. $53,000 $53,000
Solo 401(k): Catch-Up Contributions over 50 $1,000 $1,000
SEP IRA (Self-Employed), Solo 401(k) – Maximum Compensation Limit $265,000 $265,000
SEP IRA Employee Eligibility: The maximum amount of income that an employer can require for employee SEP IRA plan eligibility remains unchanged at $600.
SIMPLE IRA Employee Eligibility: The maximum amount of income that an employer can require for employee SIMPLE IRA plan eligibility remains unchanged at $5,000
Defined Benefit Plans $210,000 $210,000
SIMPLE IRA (Savings Incentive Match PLan) $12,500 $12,500
SIMPLE IRA: Catch-Up Contributions over 50 $3,000 $3,000
401(k), 403(b), 457,  TSP $18,000 $18,000
401(k), 403(b), 457,  TSP: Catch-Up Contributions over 50 $6,000 $6,000
Highly Compensated Employee Determination $120,000 $120,000
Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate income workers – Married filing jointly $61,000 $61,000
Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate income workers – Heads of Household $45,750 $45,000
Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate income workers – Singles and married filing separately $30,500 $30,000

 

2016 Tax Rates: Single Filing Individual Return
(other than surviving spouses and unmarried heads of households)
If Taxable Income Is: The Tax Rate Is:
Not over $9,275 10% of taxable income
Over $9,275 but not over $37,650 $927.50 plus 15% of the excess over $9,275
Over $37,650 but not over $91,150 $5,183.75 plus 25% of the excess over $37,650
Over $91,150 but not over $190,150 $18,558.75 plus 28% of the excess over $91,150
Over $190,150 but not over $413,350 $46,278.75 plus 33% of the excess over $190,150
Over $413,350 but not over $415,050 $119,934.75 plus 35% of the excess over $413,35
Over $415,050 $120,529.75 plus 39.6% of the excess over $415,050

 

2016 Tax Rates: Married Filing Individual Return
If Taxable Income Is: The Tax Rate Is:
Not over $18,550 10% of taxable income
Over $18,550 but not over $75,300 $1,855 plus 15% of the excess over $18,550
Over $75,300 but not over $151,900 $10,367.50 plus 25% of the excess over $75,300
Over $151,900 but not over $231,450 $29,517.50 plus 28% of the excess over $151,900
Over $190,150 but not over $413,350 $51,791.50 plus 33% of the excess over $231,450
Over $413,500 but not over $466,950 $111,818.50 plus 35% of the excess over $413,350
Over $466,950 $130,578.50 plus 39.6% of the excess over $466,950

 

2016 Tax Rates: Standard Deduction
Unmarried individuals (other than surviving spouses and heads of households): $6,300 
Married couples filing joint returns and surviving spouses: $12,600
Heads of households: $9,300
Married Individuals filing separate returns: $6,300

 

2016 Tax Rates: Itemized Deduction Limit
Unmarried individuals (other than surviving spouses and heads of households): $259,400
Married couples filing joint returns and surviving spouses: $311,300
Heads of households: $285,350
Married Individuals filing separate returns: $155,650

 

2016 Tax Rates: Personal Exemption – The personal exemption for tax year 2016 is $4,050. The adjusted gross incomes phase-out range begins and ends as follows:
Unmarried individuals (other than surviving spouses and heads of households): $259,400 to $381,900
Married couples filing joint returns and surviving spouses: $311,300 to $433,800
Heads of households: $285,350 to $407,850
Married Individuals filing separate returns: $155,650 to $216,900

 

2016 Tax Rates: Alternative Minimum Tax (exemption amounts are)
Unmarried individuals: $53,900
Married couples filing joint returns and surviving spouses: $83,800
Married individuals filing separate returns: $41,900
The excess taxable income above which the 28% tax rate applies is:
Married individuals filing separate returns: $93,150
Joint returns and unmarried individuals (other than surviving spouses): $186,300

 

2016 Tax Rates: Earned Income Credit

For the 2016 earned income credit, Revenue Procedure 2015-53 has a table providing maximum income limits and credit amounts, along with phase-out thresholds, by filing categories and numbers of qualifying children.

For example, the maximum earned income credit amount is $6,269 for taxpayers filing jointly who have 3 or more qualifying children, phasing out completely when adjusted gross income (or, if greater, earned income) reaches $53,505.

David Chang

Award-Winning Entrepreneur, Wealth Manager and CEO | Chief Editor, Author, Keynote Speaker, Consultant ArtofThinkingSmart.com | Political Consultant | Army Officer National Guard | Living To Fulfill Needs, Solve Problems, and Live Passionately!

2 Comments

  1. seo link building on November 5, 2012 at 09:26

    Nice post. I was checking constantly this blog and I’m impressed! Extremely useful info specifically the last part 🙂 I care for such information a lot. I was seeking this particular information for a very long time. Thank you and good luck.
    seo link building

  2. watch live tv on computer on November 11, 2012 at 08:29

    Just what I needed, thanks a lot. it is time to go to see here http://www.onlinetvsoftware.net/

Leave a Comment

You must be logged in to post a comment.

Categories

FREE Download!

5 Awesome Tips to SMART Productivity

A Step-by-Step Process on How to be More Effective and Efficient at Life!

Get ATS Updates in Your Inbox!

Get the latest from the ATS blog delivered right to your inbox!

Contact Us

  • This field is for validation purposes and should be left unchanged.
Read previous post:
The True Cost of Investing

There is over $16 trillion invested in mutual funds. Mutual funds are an excellent way to invest and grow your...

Close