Retirement Topics - IRA Contribution Limits
For 2015, 2016, and 2017, your total contributions to all of your traditional and Roth IRAs cannot be more
$5,500 ($6,500 if you’re age 50 or older), or
your taxable compensation for the year, if your compensation was less than this dollar limit.
The IRA contribution limit does not apply to:
Claiming a tax deduction for
your IRA contribution
Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and
your income exceeds certain levels.
Roth IRA contribution
The same general contribution limit applies to both Roth and traditional IRAs. However, your Roth IRA contribution might be limited based on your filing
status and income.
IRA contributions after age
You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make
rollover contributions to a Roth or traditional IRA regardless of your age.
If you file a joint return, you may be able to contribute to an IRA even if you did not have taxable compensation as long as your spouse did. The amount
of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the formula in
IRS Publication 590-A.
If neither spouse participated in a retirement plan at work, all of your contributions will be
Link to IRS data:
Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
53.5 cents per mile for business miles driven, down from 54 cents for 2016
17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
14 cents per mile driven in service of charitable organizations
The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016.
The charitable rate is set by statute and remains unchanged.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for
medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated
Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used
These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted today on IRS.gov, contains the standard mileage rates, the amount a taxpayer
must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the
allowance under a fixed and variable rate plan.
It’s not well known in small business circles and networking groups around town – but it is illegal to charge your customers or clients fees for credit card processing. (You can offer a
discount for paying cash, though!)
So, as owners and executives, we need to know this for our business. But, as consumers, we also need to know to be on the watch for this practice which Dave Lieber with the Dallas Morning
News says is most prevalent in College Station and Dallas/Fort Worth!
Below, are two links related to this topic. First, I have included a link from the Texas Attorney General. I have also included a link to an article by Dave Lieber from the Dallas
We don’t want any of you to be the next called out by name in a Dallas Morning News consumer affairs alert!
TEXAS ATTORNEY GENERAL LINK
DALLAS MORNING NEWS ARTICLE LINK:
The IRS has issued revised mileage rates for 2016- down to $.540 for 2016 from $.575 in 2015. (NOTE: The allowed mileage rate for nonprofit activities is unchanged.)
So, when figuring your 2015 mileage – use the $.575 per mile rate.
However, for any employee reimbursements in 2016 – use the $.54 per mile rate.
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