Retirement
Maximum Contributions
| Plan | Demographic | For 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 IRA | Employee | NA – not eligible to contribute |
| SEP IRA | Employer | 0 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 IRA | Self -Employed | 20% of (net self employed income minus SE tax). $53,000 max |
| SIMPLE IRA | Employee under age 50 | $12,500 |
| SIMPLE IRA | Employee age 50 or older | $15,500 |
| SIMPLE IRA | Employer | Option 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 IRA | Self -Employed under age 50 | 100% of self employment income up to $12,500 PLUS 3% of (remaining self employment income – 1/2 SE tax) max $29,000 |
| SIMPLE IRA | Self Employed age 50 or older | 100% of self employment income up to $15,500 PLUS 3% of (remaining self employment income – 1/2 SE tax) max $32,000 |
| 401-K | Employee under age 50 | $18,000 |
| 401-K | Employee age 50 or older | $24,000 |
| 401-K | Self -Employed under age 50 | 100% 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-K | Self Employed age 50 or older | 100% of self employment income up to $24,000 PLUS up to 20% of (remaining self employment income – 1/2 SE tax) max $59,000 |