Michael Choate Associates CPA

New 2016 Contribution Limits for Traditional & Roth IRAs

Year General Contribution
Catch-Up Contribution
Limit (Over 50 years old)
2014 $5,500 $6,500
2015 $5,500 $6,500
2016 $5,500 $6,500
2017 $5,500 $6,500

IRA Limitations

If you are covered by an employer-sponsored plan but your spouse is not - your spouse may contribute to an IRA if your joint income is less than $194,000.

If both of you are in employer-sponsored plans then you can only contribute to IRA if your joint income is less than $118,000.

Roth IRA

To contribute to a Roth IRA, your joint income must be less than $194,000.

For further analysis of the benefits and tax impact of IRAs on your unique situation email mike@choatecpa.com.