$210,000/ ESOP Maximum Amount $1,070,000 $210,000/ $210,000/ Sec. 409(o)(1)(C)(ii). Determining lengthening of (Indexed for $1,050,000 $1,070,000 five-year distribution period. $5,000 increments) Deductible, Nondeductible, and Roth IRA $5,500 (Indexed in Contribution Limits $5,500 $5,500 Sec. 219(b)(1)(A). This is the limit on how much $500 can be contributed to an IRA. increments) IRA Catch-Up Provision for Individuals 50 or Older by year end $6,500 Sec. 219(a)(5)(B). This is the amount that can be (Indexed in $6,500 $6,500 contributed for those 50 and older by year end. $500 The catch up is $1,000 in 2016. The listed number increments) is the total amount that can be contributed. 2016 IRA Phaseout Limits for Active Participants in a Qualified Plan Modified Adjusted Gross Income (MAGI) Contributions to Traditional IRAs: Sec. 219(g)(3)(B) 2015 2016 Filing Status Phaseout of Deduction 2014 Begins $96,000 $98,000 $98,000 Married filing jointly Ends (i.e., no deduction) $116,000 $118,000 $118,000 Begins $60,000 $61,000 $61,000 Single & HOH Ends $70,000 $71,000 $71,000 Begins $0 $0 $0 Married Filing Separately Ends $10,000 $10,000 $10,000 Begins $181,000 $183,000 $184,000 Nonworking spouse Ends $191,000 $193,000 $194,000 If a single-filing taxpayer participates in a qualified plan at work and earns What this means: less than $61,000 in 2016, he may use the full $5,500 IRA deduction. Once he earns more than $61,000, his deduction is phased out until he reaches $71,000, at which point he would no longer be entitled to an IRA deduction.
ESOP Maximum Amount Sec. 409(o)(1)(C)(ii). Determining lengthening of five-year distribution period. $210,000/ $1,050,000 $210,000/ $1,070,000 $210,000/ $1,070,000 (Indexed for $5,000 increments) Deductible, Nondeductible, and Roth IRA Contribution Limits Sec. 219(b)(1)(A). This is the limit on how much can be contributed to an IRA. $5,500 $5,500 $5,500 (Indexed in $500 increments) IRA Catch-Up Provision for Individuals 50 or Older by year end Sec. 219(a)(5)(B). This is the amount that can be contributed for those 50 and older by year end. The catch up is $1,000 in 2016. The listed number is the total amount that can be contributed. $6,500 $6,500 $6,500 (Indexed in $500 increments) 2016 IRA Phaseout Limits for Active Participants in a Qualified Plan Modified Adjusted Gross Income (MAGI) Contributions to Traditional IRAs: Sec. 219(g)(3)(B) Filing Status Phaseout of Deduction 2014 2015 2016 Married filing jointly Begins $96,000 $98,000 $98,000 Ends (i.e., no deduction) $116,000 $118,000 $118,000 Single & HOH Begins $60,000 $61,000 $61,000 Ends $70,000 $71,000 $71,000 Married Filing Separately Begins $0 $0 $0 Ends $10,000 $10,000 $10,000 Nonworking spouse Begins $181,000 $183,000 $184,000 Ends $191,000 $193,000 $194,000 What this means: If a single-filing taxpayer participates in a qualified plan at work and earns less than $61,000 in 2016, he may use the full $5,500 IRA deduction. Once he earns more than $61,000, his deduction is phased out until he reaches $71,000, at which point he would no longer be entitled to an IRA deduction.
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