August 09, 2016

As part of your planning for next year, now is the time to review funding your retirement accounts. By establishing your contribution amounts at the beginning of each year, the financial impact of saving for your future should be more manageable. Here are annual contribution limits for the more popular programs:

Retirement
Program

2016

2015
Change Age 50 or over
to catch up
IRA: Traditional $5,500 $5,500 none add: $1,000
IRA: Roth $5,500 $5,500 none add: $1,000
IRA: Simple $12,500 $12,500 none add: $3,000
401(k), 403(b), 457 plans $18,000 $18,000 none add: $6,000

Take action

If you have not already done so, please consider:

  • reviewing and adjusting your periodic contributions to your retirement savings accounts to take full advantage of the tax advantaged limits
  • setting up new accounts for a spouse or dependent(s)
  • using this time as a chance to review the status of your retirement plan
  • reviewing contributions to other tax-advantaged plans like FSA's (Flexible Spending Accounts) and pre-paid medical savings plans like HSAs (Health Savings Accounts)

While the annual limits did not go up for these plans in 2016, it is still a good idea to review your funding plans for your retirement.

Contact Us

There are many events that occur during the year that can affect your tax situation. Preparation of your tax return involves summarizing transactions and events that occurred during the prior year. In most situations, treatment is firmly established at the time the transaction occurs. However, negative tax effects can be avoided by proper planning.

Please contact us in advance if you have questions about the tax effects of a transaction or event, including the following:
  • Pension or IRA distributions.
  • Significant change in income or deductions.
  • Job change.
  • Marriage.
  • Attainment of age 59½ or 70½.
  • Sale or purchase of a business.
  • Divorce or separation.
  • Notice from IRS or other revenue department.
  • Retirement.
  • Sale or purchase of a residence or other real estate.
  • Self-employment.
  • Charitable contributions of property in excess of $5,000.

Copper Canyon Tax and Accounting Services is a full service provider of business accounting,
business income tax, personal income tax, and payroll in Tucson, Arizona.
Topic: Advice