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401(k) and IRA Limits Unchanged for 2016
Old 10-21-2015, 12:22 PM   #1
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401(k) and IRA Limits Unchanged for 2016

https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations;-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016


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Old 10-21-2015, 12:27 PM   #2
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Thanks for the heads up. From the link
Quote:
The highlights of limitations that changed from 2015 to 2016 include the following:
  • 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 coupleís income is between $184,000 and $194,000, up from $183,000 and $193,000.
  • The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000. For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
  • The AGI limit for the saverís credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,500 for married couples filing jointly, up from $61,000; $46,125 for heads of household, up from $45,750; and $30,750 for married individuals filing separately and for singles, up from $30,500.
Apparently everything else remains the same as 2015.
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Old 10-21-2015, 12:50 PM   #3
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Been looking for this, glad to know its finally out. Even if no IRA contribution limit increase is a bit of a bummer.
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Old 10-21-2015, 01:25 PM   #4
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I had a feeling there would be no increase. I'm a bit torn, as to how I feel about it though. On one hand, I'm a bit sad because I'd like to sock away more. But, I currently max out my 401k and my Roth, and raising the limits would only encourage me to keep maxing. Sometimes I think I need to take a step back from investing for the future and live a little. Even if $500 from the Roth and $500 from the 401k (minus tax consequences) doesn't really amount to much.
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Old 10-22-2015, 09:05 AM   #5
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I had a feeling there would be no increase. I'm a bit torn, as to how I feel about it though. On one hand, I'm a bit sad because I'd like to sock away more. But, I currently max out my 401k and my Roth, and raising the limits would only encourage me to keep maxing. Sometimes I think I need to take a step back from investing for the future and live a little. Even if $500 from the Roth and $500 from the 401k (minus tax consequences) doesn't really amount to much.
You could reduce taxable savings and use that to top up the 401k and Roth IRA if limits increase.
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Old 10-23-2015, 02:22 PM   #6
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Of course, the IRS's "cost of living index" didn't increase enough to warrant an increase.

Those DC boneheads are too insulated from The Real World to make a halfway-intelligent decision on the real increase in the cost-of-living for us lesser mortals living outside The Beltway.

I will laugh heartily and hoist a beer when these FedGov Bureaucrats run to their fainting couches when they find that their promised pensions are unsustainable and are reduced by 50%.
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Old 10-23-2015, 02:33 PM   #7
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Of course, the IRS's "cost of living index" didn't increase enough to warrant an increase.

I will laugh heartily and hoist a beer when these FedGov Bureaucrats run to their fainting couches when they find that their promised pensions are unsustainable and are reduced by 50%.
Speaking of hoisting a beer, I've noticed that booze has been slowly creeping up in price. My property taxes went up around 4.2% over last year. It's about to be open season on employee benefits here, and how much you wanna bet health insurance is going to go up?

But yeah, the "cost of living" isn't going up!

Well, okay, I just noticed the last time I bought chocolate milk, it was $3.99/gal instead of $4.49 at Safeway. So there's some relief, I guess.
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Old 10-23-2015, 08:12 PM   #8
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Anyone know if the simple ira limits were increased? Haven't checked yet.


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Old 10-23-2015, 09:18 PM   #9
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Speaking of hoisting a beer, I've noticed that booze has been slowly creeping up in price.
I've noticed that too....

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how much you wanna bet health insurance is going to go up?
Zero - it's going to go up and the services are going to go down.
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Old 10-23-2015, 09:22 PM   #10
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Those DC boneheads are too insulated from The Real World to make a halfway-intelligent decision on the real increase in the cost-of-living for us lesser mortals living outside The Beltway.
You are being far to kind to our elected lawmakers.
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Old 10-24-2015, 07:15 AM   #11
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So looked it up. Looks like nothing changed except for Hsa limits. Clearly health care expenses have gone up. I wish this limit were higher. It would make sense.


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