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2016 Tax Fast Facts For Investors

It’s not hard to find tax information on the Internet – when quarterly taxes are due, 401(k) contribution limits, and so 2016 Tax Factsforth.  But in the interest of saving you time and a few clicks, we’ve gathered all of 2016’s important tax facts and dates in a single spot.

IRA Accounts

  • IRA contribution limits (Roth or traditional):
    • $5,500 under age 50
    • $6,500 for age 50 and above
  • Income limits for deductible IRA contribution:
    • Single filers or married couples filing jointly who aren’t covered by a retirement plan at work: None; fully deductible contribution
    • Single filers covered by a retirement plan at work: Modified adjusted gross income:
      • < $61,000 – fully deductible contribution;
      • between $61,000 and $71,000 – partially deductible contribution;
      • > more than $71,000 – contribution not deductible
    • Married couples filing jointly who are covered by a retirement plan at work: Modified adjusted gross income:
      • < $98,000 – fully deductible contribution;
      • between $98,000 and $118,000 – partially deductible contribution;
      • > $118,000 – contribution not deductible.
  • Income limits for nondeductible IRA contributions: None
  • Income limits for IRA conversions: None
  • Income limits for Roth IRA contribution, single filers: Modified adjusted gross income:
    • < $117,000 – full Roth contribution;
    • between $117,000 and $132,000 – partial Roth contribution;
    • > $132,000 – no Roth contribution
  • Income limits for Roth IRA contribution, married couples filing jointly: Modified adjusted gross income :
    • < $184,000 – full Roth contribution;
    • between $184,000 and $194,000 – partial Roth contribution;
    • > $194,000 – no Roth contribution

401(k) Accounts

  • Contribution limits for 401(k), 403(b), 457 plan, or self-employed 401(k) (traditional or Roth):
  • $18,000 under age 50
  • $24,000 for age 50 and above
  • Income limits for 401(k), 403(b), 457 plans: None
  • SEP IRA contribution limit: The lesser of 25% of compensation or $53,000

Saver’s Tax Credit

  • Saver’s Tax Credit, income limit, single taxpayers: $30,750
  • Saver’s Tax Credit, income limit, married couples filing jointly: $61,500

Health Savings Accounts (HSAs)

  • Health-savings account contribution limit:
  • Single contributor under age 55: $3,350
  • Single contributor age 55 and above: $4,350
  • Family coverage, contributor under age 55: $6,750
  • Family coverage, contributor age 55 and above: $7,750
  • High-deductible health plan out-of-pocket maximum
  • Single coverage: $6,550
  • Family coverage: $13,100

College Related Savings Accounts (529s, Coverdell ESAs)

  • Section 529 college-savings account contribution limit: Per IRS guidelines, contributions cannot exceed amount necessary to provide education for beneficiary. Deduction amounts vary by state, and gift tax may apply to very high contribution amounts.
  • Section 529 college-savings account income limit: None.
  • Coverdell Education Savings Account contribution limit: $2,000 per year per beneficiary.
  • Coverdell Education Savings Account income limit,
    • Single filers: Modified adjusted gross income
      • < $95,000 – full contribution;
      • between $95,000 and $110,000 – partial contribution;
      • > $110,000 – no contribution
    • Married couples filing jointly: Modified adjusted gross income
      • < $190,000 – full contribution;
      • between $190,000 and $220,000 – partial contribution;
      • > $220,000 – no contribution

 2016: Important Tax Dates to Remember

  • Jan 1, 2016: New IRA, retirement-plan, and HSA contribution and income limits go into effect for 2016 tax year, as listed above
  • Jan. 15, 2016: Estimated tax payments due for fourth quarter of 2015.
  • April 18, 2016: 
    • Individual tax returns (or extension request forms) due for 2015 tax year.
    • Estimated tax payments due for first quarter of 2016.
    • Last day to contribute to IRA for 2015 tax year (contribution limits: $5,500 under age 55; $6,500 for age 55 and above).
    • Last day to contribute to health-savings account for 2015 tax year (2015 contribution limits: $3,350 for single coverage, contributor under age 55; $4,350 for single coverage, contributor age 55 and above; $6,650 for family coverage, contributor under age 55; $7,650 for family coverage, contributor age 55 and above).
  • June 15, 2016: Estimated tax payments due for second quarter of 2016.
  • Sept. 15, 2016: Estimated tax payments due for third quarter of 2016.
  • Oct. 17, 2016: Individual tax returns due for taxpayers who received a six-month extension.
  • Dec. 31, 2016:
    • Retirees age 70 1/2 and above must take required minimum distributions from traditional IRAs and 401(k)s. 
    • Last date to make contributions to company retirement plans (401(k), 403(b), 457) for 2016 tax year. 

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