The IRS Wednesday announced new inflation adjustments for tax rates and retirement account contribution limits.
Ken Reid—Getty Images
By Susie Poppick
October 21, 2015

The IRS on Wednesday announced the contribution limits for retirement plans in 2016.

Unsurprisingly, given how low inflation has been, you won’t be able to put more money in your 401(k) next year: The maximum you’ll be able to contribute is $18,000, the same as in 2015.

Other limitations with lower thresholds for inflation adjustments will change, however. Those include phase-out income rules for Roth IRAs and limits on who can take a tax deduction for contributions to a traditional IRA.

Specifically, if you don’t have a workplace retirement plan but your spouse is covered by one, and together you make less than $184,000, you’ll be able to take a full deduction up to the limits on your traditional IRA contribution. If you earn between $184,000 and $194,000 you can take a partial deduction, and if you make more than $194,000, you won’t be able to take a deduction at all. Those thresholds have gone up from $183,000 and $193,000 for 2015.

The Roth IRA income phase-out range for married couples filing jointly is also $184,000 to $194,000, up from $183,000 to $193,000. For singles and heads of household the range has also increased, to $117,000 and $132,000, respectively. Translation: If you make too much money, you can’t contribute the full amount (or at all) to a Roth, though anyone with earned income can make a non-deductible contribution to a traditional IRA.

The maximum income for taking a saver’s credit, or “retirement savings contribution credit,” is now $61,500 for married couples filing jointly, up from $61,000 in 2015. It’s $46,125 for heads of household and $30,750 for singles, up from 2015 levels of $45,750 and $30,500, respectively.

The $18,000 contribution limit for 401(k)s also applies to 403(b)s, most 457 plans, and the federal government’s Thrift Savings Plan; catch-up contributions (for people aged 50 and older) remain at $6,000.

The limit on annual contributions to an IRA is unchanged at $5,500, with catch-up contributions (for people aged 50 and older) remaining at $1,000 for 2016.

Read More: How to Choose Between a 401(k) and Roth IRA

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