Retirement Contribution Limits (It’s Not Too Late!)

The following chart illustrates the contribution limits for retirement plans for calendar years 2015 and 2016:

Plan Type                               Contribution Limit

IRA (under 50)                        $5,500
IRA (50 and older)                  $6,500

401(k) (under 50)                   $18,000
401(k) (50 and older)              $24,000

SIMPLE Plan (under 50)         $12,500
SIMPLE Plans
(50 and older)                         $15,500

Remember that, subject to certain limits, every dollar contributed will reduce your current federal taxable income dollar for dollar. (Income is taxed at the time of distribution, hopefully when you are in a lower tax bracket.) The contribution deadline for 401(k) plans is December 31. IRA contributions may be made up until the normal due date for your tax return in the following year.
— Kevin Palmer