Retirement

Maximum Contributions

PlanDemographicFor Years 2016-2017
IRA Traditional or Roth (income limits apply)under age 50$5,500
IRA Traditional or Roth (income limits apply)age 50 or older$6,500
SEP IRAEmployeeNA – not eligible to contribute
SEP IRAEmployer0 to 25% of W-2 wages (can be different each year);
must contribute for all eligible employees 2016
max: $53,000; 2017 max: $54,000
SEP IRASelf -Employed20% of (net self employed income minus SE tax). $53,000 max
SIMPLE IRAEmployee under age 50$12,500
SIMPLE IRAEmployee age 50 or older$15,500
SIMPLE IRAEmployerOption 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or
Option 2: 2% of wages for all employees (including nonparticipants)
max $29,000
SIMPLE IRASelf -Employed under age 50100% of self employment income up to $12,500 PLUS 3% of (remaining self employment income – 1/2 SE tax)
max $29,000
SIMPLE IRASelf Employed age 50 or older100% of self employment income up to $15,500 PLUS 3% of (remaining self employment income – 1/2 SE tax)
max $32,000
401-KEmployee under age 50$18,000
401-KEmployee age 50 or older$24,000
401-KSelf -Employed under age 50100% of self employment income up to $18,000 PLUS up to 20% of (remaining self employment income – 1/2 SE tax)
max $53,000
401-KSelf Employed age 50 or older100% of self employment income up to $24,000 PLUS up to 20% of (remaining self employment income – 1/2 SE tax)
max $59,000