There is Still Time to Make Your IRA Contribution for 2016!
The rules regarding IRAs offer flexibility by allowing you to take advantage of the tax benefits of these accounts all the way up to the filing deadline which is April 18th, 2017.
Here’s a recap of the 2016 and 2017 maximum IRA contribution limits, income limits and phaseouts, and how to get the most out of your IRA accounts.
2016 Maximum IRA Contribution Limits
The standard 2016 maximum IRA contribution limit is $5,500. This is unchanged from the 2015 limit.
2016 IRA Catch-up Contribution
For those age 50 and over, the 2016 IRA catch-up contribution will also stay the same, at an additional $1,000. With the standard contribution at $5,500, this means the 2016 catch-up contribution plus standard contribution is $6,500 in total.
Note that you are eligible for the catch-up contribution if you turn 50 during any day in the calendar year.
2017 Maximum IRA Contribution Limits
The standard 2017 maximum IRA contribution limit is $5,500. This is unchanged from the 2016 limit, as previously noted.
2017 IRA Catch-up Contribution
For those age 50 and over, the 2017 IRA catch-up contribution will also stay the same, at an additional $1,000. With the standard contribution at $5,500, this means the 2017 catch-up contribution plus standard contribution is $6,500 in total.
Don't wait until the last minute; we can help you set up your IRA or review your existing account. Contact Will Adamczyk.