The Internal Revenue Service has announced contribution limits for retirement plan participants for 2016. As expected, most of the contribution limitations for retirement plans have not changed from the 2015 limits.
Some associated tax breaks and other items have changed for 2016. Here are the highlights:
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $184,000 and $194,000, up from between $183,000 and $193,000.
The adjusted gross income phaseout range for taxpayers making contributions to a Roth IRA is now from $184,000 to $194,000 for married couples filing jointly, up from the previous $183,000 to $193,000 range. For singles and heads of household, the income phaseout range is from $117,000 to $132,000, up from the previous $116,000 to $131,000 range.