January 2016
2016 Retirement Contribution & Social Security Limits
As the end of the year rolls around, if you have not already done so, now is the time to plan for contributions into your retirement accounts in 2016.
Retirement Contribution Limits
Retirement Program | 2016 | 2015 | Change | Age 50 or over catch up |
IRA: Traditional | $5,500 | $5,500 | none | add: $1,000 |
IRA: Roth | $5,500 | $5,500 | none | add: $1,000 |
IRA: SIMPLE | $12,500 | $12,500 | none | add: $3,000 |
401(k), 403(b), 457 plans | $18,000 | $18,000 | none | add: $6,000 |
Social Security
Item | 2016 | 2015 | Change | Comment |
Wages Subject to Social Security | $118,500 | $118,500 | none | Annual Social Security employee tax: $7,347 |
Average Estimated Monthly Retirement Benefit | $1,341 | $1,328 | +$13 | Change in estimated amount |
Don’t forget to account for any matching programs offered by your employer as you determine your various funding levels for next year.