Saturday, January 2, 2016
The Internal Revenue Service (IRS) has announced Roth IRA contribution limits as well as income limits that will apply towards 2016. So far there have only been minor changes from the limits that existed in 2015. The IRS has not changed the limits on contributions to a Roth IRA, and individuals may still contribute a maximum of $5,500 while those over the age of 50 may contribute an additional $1,000. “One of the IRS rules on Roth IRA is that your income can not exceed a certain level of modified adjusted gross income (MAGI).” Taxpayers that are at a certain low income level might be able to qualify for the retirement savings tax credit. This column discusses some of the important differences between a traditional IRA and Roth IRA and how they impact taxes.
See Eric Whiteside, Roth IRA Contribution Limits in 2016, Investopedia, December 31, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.