2016 Retirement plan contribution limits
- Traditional or Roth IRA $ 5,500
(if 50 or older on December 31) $ 6,500
- SIMPLE-IRA $ 12,500
(if 50 or older on December 31) Can make a catch up contribution of up to $ 3,000
- 401(k), 403(b) and 457 plans $ 18,000
(if 50 or older on December 31) $ 23,000
Deductible IRA contribution amounts may be reduced or eliminated if you (or your spouse) are covered by a “qualified retirement plan”.
SEP-IRA
25% of eligible compensation up to $ 53,000.
Mileage rates as of January 1st, 2016
- Business mileage 54.0 cents per mile
- Medical or Moving mileage 19.0 cents per mile
- Charitable mileage 14.0 cents per mile
2016 Social Security tax rates and wage limits for employees
- Medicare portion of tax is 1.45% (.0145) with no limit (all wages are taxed)
- The employer FICA tax remains at 6.2% (.062) on the first $118,500 earned (maximum tax = $7347.00)
Federal Minimum Wage
Remains at $7.25 per hour as of November 19, 2009.