Have you made your 2015 Roth IRA contribution?
If you have not yet made the maximum contribution, and are eligible to make contributions, you still have time!
Tax payers have until April 18th of 2016 to make their Roth contributions for the 2015 tax year. If you are within the income limitations to make contributions, a Roth IRA is an excellent investment account as investment growth is tax deferred and withdrawals in retirement can be tax free.
For 2015, single filers are able to fund their Roth IRAs with 100% of the contribution limits if their income is below $116,000. Their amount of contribution availability drops if they are above the $116,000 and are phased out completely at $131,000. For Married Filing Joint taxpayers, income restraints begin at $183,000 and end at $193,000.
Looking forward for 2016 contributions, contribution limits for this year have stayed the same as 2015. This includes the limits for the Roth and Traditional IRAs and the majority of employer sponsored plans such as 401ks and 403bs. A very good practice is to contribute enough of your salary to receive at least the employer match. Also, pay raises often present an easy opportunity to increase your deferral, while reducing your adjusted gross income.
The contribution limits for nearly all types of retirement plans are listed in the following chart:
|
Qualified Plans |
2015 |
2016 |
|
401k, Roth 401k, and 403b plans |
$18,000 |
$18,000 |
|
Catch-up for ages 50 & over |
$5,500 |
$5,500 |
|
457 Plans of tax exempt employers |
$18,000 |
$18,000 |
|
Catch-up for ages 50 & over |
$5,500 |
$5,500 |
|
SIMPLE IRA or SIMPLE 401k plans |
$12,500 |
$12,500 |
|
Catch-up for ages 50 & over |
$2,500 |
$2,500 |
|
Limits on annual additions to SEP Plans |
$53,000 |
$53,000 |
|
Traditional and Roth IRAs |
$5,500 |
$5,500 |
|
Catch-up for ages 50 & over |
$1,000 |
$1,000 |
Our continuous service monitors your income and determines every year how much you should be contributing to each of these investment accounts. It also reviews your income tax and estate picture, which may provide opportunities for tax savings. If you are interested in this service, please contact us.
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