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2015 IRA Contributions & Deduction Limits :: Knowledge Center :: THE RETIREMENT SOURCE®
2016 IRA Contributions & Deduction Limits

2016 Combined Traditional and Roth IRA Contribution Limits:

If you are under 50 years of age at the end of 2016: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $5,500 or the amount of your taxable compensation for 2016. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $5,500.The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.

If you are 50 years of age or older before the end of 2016: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,500 or the amount of your taxable compensation for 2015. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $6,500. The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.

2016 IRA Deduction Limits -
Effect of Modified AGI on Deduction
if You Are Covered by a Retirement Plan at Work

If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.

If Your Filing Status Is... And Your Modified AGI Is... Then You Can Take...
Single or
Head of Household
$61,000 or less Full deduction up to the amount
of your contribution limit
  more than $61,000 but less
than $71,000
Partial deduction
  $71,000 or more No deduction
Married Filing Jointly or
Qualifying Widow(er)
$98,000 or less Full deduction up to the amount
of your contribution limit.
  more than $98,000 but less
than $118,000
Partial deduction
  $118,000 or more No deduction
Married Filing Separately less than $10,000 Partial deduction
  $10,000 or more No deduction


If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status.

 

2016 Deduction Limit -
Effect of Modified AGI on Deduction
if You Are NOT Covered by a Retirement Plan at Work

If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.    If you file separately, did not live with your spouse at all during the year, your IRA deduction is determined under the "Single" filing status.

If Your Filing Status Is... And Your Modified AGI Is... Then You Can Take...
Single, Head of Household or
Qualifying Widow(er)
any amount Full deduction up to the amount
of your contribution limit
Married Filing Jointly or
Married Filing Separately
with a spouse who IS NOT
covered by a plan at work
any amount Full deduction up to the amount
of your contribution limit
Married Filing Jointly
with a spouse who IS
covered by a plan at work
$183,000 or less Full deduction up to the amount
of your contribution limit
  more than $183,000 but less
than $193,000
Partial deduction
  $193,000 or more No deduction
Married Filing Separately
with a spouse who IS
covered by a plan at work
less than $10,000 Partial deduction
  $10,000 or more No deduction

ROTH IRA CONTRIBUTION ELIGIBILITY

Tax Filing Status of Single with MAGI of $116,000 or less with 100%  deduction.  Single filer with MAGI $116,000 - $131,000 must have amount calculated to determine partial amount deduction.  Single with MAGI at $131,000 or more have no deduction.          

Married Filing Jointly with MAGI of $183,000 or less one can take 100% deduction. Married filing jointly with $183,000 to $193,000 MAGI  has a  partial deduction which must be calculated to determine amount.  Married filing Jointly with MAGI of $193,000 or more has no deduction.

  Married filing separately with a MAGI of less than $10,000 will have a partial deduction which must be calculated to determine the amount. Married filing separately with MAGI of $10,000 or more will have no amount deductible.                                                                               

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