--- title: Maximum 401(k) Contributions Will Remain the Same in 2016 description: The maximum annual workplace retirement account contribution will remain $18,000 in 2016 authors: - name: Susie Poppick url: https://money.com/author/susie-poppick/ at_money_since: 2013 articles: 117 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Shopping - Taxes - Technology social: - https://x.com/susiepoppick former_staff: true published: '2015-10-21T21:42:59.000Z' modified: '2024-04-16T07:17:07.000Z' section: Retirement tags: - 401(k) - 401(k)s - Retirement - saving for retirement - Savings word_count: 345 canonical: https://money.com/maximum-401k-contribution-2016/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![88305470](https://img.money.com/2015/10/401k-2016-contribution-limits.jpg) *The IRS Wednesday announced new inflation adjustments for tax rates and retirement account contribution limits.* The IRS on Wednesday announced the contribution limits for retirement plans in 2016. Unsurprisingly, given how low [inflation](http://inflationdata.com/Inflation/Inflation_Rate/Monthly_Inflation.aspx) 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](https://money.com/401k-roth-ira-max-out-first/)** ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/maximum-401k-contribution-2016/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "401(k)", "item": "https://money.com/401k/" }, { "@type": "ListItem", "position": 4, "name": "Maximum 401(k) Contributions Will Remain the Same in 2016" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/maximum-401k-contribution-2016/#webpage", "url": "https://money.com/maximum-401k-contribution-2016/", "name": "Maximum 401(k) Contributions Will Remain the Same in 2016", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2015-10-21T21:42:59.000Z", "mainEntity": { "@id": "https://money.com/maximum-401k-contribution-2016/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/maximum-401k-contribution-2016/#breadcrumb" }, "dateModified": "2024-04-16T07:17:07.000Z" }, { "@type": "Article", "headline": "Maximum 401(k) Contributions Will Remain the Same in 2016", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2015/10/401k-2016-contribution-limits.jpg", "width": 5310, "height": 3482, "caption": "88305470" } ], "author": [ { "@type": "Person", "name": "Susie Poppick", "url": "https://money.com/author/susie-poppick/", "@id": "https://money.com/author/susie-poppick/#author", "image": "https://img.money.com/2014/05/14-05-21_bio_author_poppick.jpg?quality=85&w=190&h=190&crop=1", "email": "susie_poppick@moneymail.com", "sameAs": [ "https://x.com/susiepoppick" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2015-10-21T21:42:59.000Z", "description": "The maximum annual workplace retirement account contribution will remain $18,000 in 2016", "abstract": "The maximum annual workplace retirement account contribution will remain $18,000 in 2016", "@id": "https://money.com/maximum-401k-contribution-2016/", "inLanguage": "en-US", "dateModified": "2024-04-16T07:17:07.000Z", "wordCount": 345, "keywords": [ "401(k)", "401(k)s", "Retirement", "saving for retirement", "Savings" ], "about": [ { "@type": "Thing", "name": "Retirement", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement" ] }, { "@type": "Thing", "name": "401(k)", "sameAs": [ "https://en.wikipedia.org/wiki/401(k)" ] } ] } ] } ```