You can build your nest egg faster by maxing out how much you stash in your retirement accounts. Here are the contribution limits for 2016:
The most you can contribute to a 401(k), 403(b) or similar workplace plan is $18,000. However, if you’ll be 50 or older anytime in 2016, you can contribute an extra $6,000, for a total of $24,000.
As for IRAs, you’ll be able to contribute up to $5,500 for 2016. If you're 50 or older, you can add on a catch-up contribution of $1,000, for a total of $6,500. These contribution limits apply to both Roth IRAs and traditional IRAs.
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Keep in mind that Roth IRAs have income restrictions. If you’re married filing taxes jointly, your 2016 adjusted gross income must be less than $184,000 to put the full amount into a Roth. The contribution amount will phase out completely if you earn more than $194,000. The phaseout range for singles is $117,000 to $132,000.
| Contribution Limits | ||
|---|---|---|
| Row 0 - Cell 0 | 2015 | 2016 |
| 401(k), 403(b), 457, Thrift Savings Plan contributions (not including employer contributions) | $18,000 | $18,000 |
| 401(k), 403(b), 457, Thrift Savings Plan catch-up contributions (for workers 50+) | $6,000 | $6,000 |
| IRA and Roth IRA contributions | $5,500 | $5,500 |
| IRA and Roth IRA catch-up contributions (for workers 50+) | $1,000 | $1,000 |
| Solo 401(k) | $53,000 | $53,000 |
| Solo 401(k) catch-up contributions (for workers 50+) | $6,000 | $6,000 |
| Simplified Employee Pension | $53,000 | $53,000 |
| Income Limits | ||
|---|---|---|
| Row 0 - Cell 0 | 2015 | 2016 |
| Roth IRA, married filing jointly | $193,000 | $194,000 |
| Roth IRA, singles | $131,000 | $132,000 |
| Retirement savers' credit, married filing jointly | $61,000 | $61,500 |
| Retirement savers' credit, head of household | $45,750 | $46,125 |
| Retirement savers' credit, single or married filing separately | $30,500 | $30,700 |