Retirement Plan Contribution Limits for 2016

published 1 February 2016

How much can I contribute to my IRA and 401(k) in 2016? Are the income limits for Roth IRAs going to increase?

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The contribution amount will not increase in 2016 because the increase in the cost-of-living index did not meet the thresholds that trigger an adjustment. The maximum you can contribute to a 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan will remain at $18,000. The catch-up contribution will remain the same, too – you can contribute an extra $6,000 if you’ll be 50 or older anytime in 2016.

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The Roth IRA income limits will be $1,000 higher than in 2015. You’ll be able to contribute the full amount to a Roth IRA in 2016 if your adjusted gross income is less than $184,000 if you’re married filing taxes jointly; the contribution amount will phase out completely if you earn more than $194,000. Singles will be able to contribute the full amount if their income is below $117,000 in 2016; the contribution amount will phase out completely if they earn more than $132,000.

The income limits to qualify for the retirement saver’s credit will also increase slightly. To be eligible for the credit, your income must be less than $61,500 if married filing jointly (up from $61,000 in 2015), or $46,125 for a head of household (up from $45,750) or $30,700 if you're single (up from $30,500). This credit is worth 10%, 20% or 50% of the first $2,000 you contribute to an IRA, 401(k) or other retirement-savings plan (the higher your income, the lower the percentage). See How to Maximize the Retirement Saver's Tax Credit for more information about this credit.

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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

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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

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As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.