The limits for retirement plan contribution are remaining the same for 2016. These limits are indexed to change with inflation but the inflation rates are low which has led to no change in the limit you can contribute for tax advantages in 2016.
The limits are as follows:
IRAs
Contributions to IRAs $5,500
Catch-up contributions to IRAs $1,000
401(k), 403(b), 457(b)(2), and 457(c)(1)
Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans $18,000
Catch-up contributions to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans $6,000
SIMPLEs
Contributions to SIMPLEs $12,500
Catch-up contributions to SIMPLEs $3,000
Defined Contribution Plans
Contributions to defined contribution plans $53,000
These limits may remain unchanged but the advantages are still big if you are maxing out your contributions. If you are 50 or older in 2016 you can start taking advantage f the catch-up contributions as a way to save even more money and really max out your tax advantages.
The retirement contribution limits go beyond these simple numbers. There are additional factors that change the amount you are allowed to contribute as well as how much your employer may contribute for you. Some of the limits are income0based and they can either reduce or fully eliminate your ability to utilize Roth IRA contributions as well as your deductible traditional IRA limits.
A CPA is your best resource for understanding exactly how much you can contribute to your retirement accounts and how to best maximize your retirement contributions for tax advantages.
