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Contributing to 401(k) and IRAs - Retirement Savings Limits

Retirement Savings Plan Limits: Using 401(k), IRA, myRA Savings Plans

Last Updated: April 25, 2016

Looking into retirement savings plans can leave your head swimming in numbers. Don’t let that distract from the all-important task at hand – determining your eligibility and contribution limits. Here’s to breaking it down.

401(k) - Employer Sponsored Retirement Account

How Much Can I Contribute to My 401(k)?

You can contribute up to $18,000 per year to your 401(k). Unless you are at least 50 years old, in which case you can contribute an additional $6,000 “catch up” amount, for a total up to $24,000 per year.

IRA - Individual Retirement Account

How Much Can I Contribute to an IRA?

You can contribute up to $5,500 annually to your traditional IRA. Unless you are at least 50 years old, in which case you can contribute an additional $1,000 per year, for a total up to $6,500 per year.

How Many Times Per Year Can I Roll Over my IRA?

You can roll over your IRA every 12 months. An additional roll over before a year has passed could result in income tax due on the rolled over amount, as well as an early withdrawal penalty and an excess contributions tax.

Under What Circumstances am I Eligible for the Saver’s Credit?

The AGI (adjusted gross income) maximum to qualify for the Saver’s Credit in 2016:

ROTH IRA

What Are the Contribution Limits for a Roth IRA?

If you file as an individual (single or head of household), you can contribute:

If you file as a married couple, you can contribute:

What is the difference between a traditional and Roth IRA?

MyRA

Under What Circumstances am I Eligible for a MyRA Account?

If you file as an individual (single or head of household), you may contribute to a MyRA account if you have an adjusted gross income of less than $129,000 per year.

If you file as a married couple, you may contribute to a MyRA account if you have a combined adjusted gross income of less than $191,000 per year.

How Much do I Need to Open a MyRA Account?

You can start a myRA account with an initial deposit of as little as $25.

What is the Minimum I Must Contribute to a MyRA Account on a Regular Basis?

You may contribute as little as $5 per payroll deduction.

How Long Can I Contribute to a MyRA Account?

You may contribute up to 30 years or $15,000, whichever comes first.

What is MyRA, and is it right for me?

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