2016 Retirement Contribution & Social Security Limits

As the end of the year rolls around, if you have not already done so, now is the time to plan for contributions into your retirement accounts in 2016.

Retirement Contribution Limits

Retirement Program 2016 2015 Change Age 50 or over catch up
IRA: Traditional $5,500 $5,500 none add: $1,000
IRA: Roth $5,500 $5,500 none add: $1,000
IRA: SIMPLE $12,500 $12,500 none add: $3,000
401(k), 403(b), 457 plans $18,000 $18,000 none add: $6,000

Social Security

Item 2016 2015 Change Comment
Wages Subject to Social Security $118,500 $118,500 none Annual Social Security employee tax: $7,347
Average Estimated Monthly Retirement Benefit $1,341 $1,328 +$13 Change in estimated amount

Don’t forget to account for any matching programs offered by your employer as you determine your various funding levels for next year.