Morningstar Important Tax Facts for 2016

Your 2016 Tax Fact Sheet and Calendar
By Christine Benz | 01-10-16 |  

It's not hard to find tax information on the Internet--when quarterly taxes are due, 401(k) contribution limits, and so forth. But in the interest of saving you a few clicks, we've amalgamated all of 2016's important tax facts and dates in a single spot.

2016: Important Tax Facts for Investors 

IRA contribution limits (Roth or traditional): $5,500 under age 50/$6,500 over age 50.
  • Income limits for deductible IRA contribution, single filers or married couples filing jointly who aren't covered by a retirement plan at work: None; fully deductible contribution.
  • Income limits for deductible IRA contribution, single filers covered by a retirement plan at work: Modified adjusted gross income under $61,000--fully deductible contribution; between $61,000 and $71,000--partially deductible contribution; more than $71,000--contribution not deductible.
  • Income limits for deductible IRA contribution, married couples filing jointly who are covered by a retirement plan at work: Modified adjusted gross income under $98,000--fully deductible contribution; between $98,000 and $118,000--partially deductible contribution; more than $118,000--contribution not deductible.
  • Income limits for nondeductible IRA contributions: None.
  • Income limits for IRA conversions: None.
  • Income limits for Roth IRA contribution, single filers: Modified adjusted gross income under $117,000--full Roth contribution; between $117,000 and $132,000--partial Roth contribution; more than $132,000--no Roth contribution.
  • Income limits for Roth IRA contribution, married couples filing jointly: Modified adjusted gross income under $184,000--full Roth contribution; between $184,000 and $194,000--partial Roth contribution; more than $194,000--no Roth contribution.

Contribution limits for 401(k), 403(b), 457 plan, or self-employed 401(k) (traditional or Roth): $18,000 under age 50/$24,000 for age 50 and above.


Income limits for 401(k), 403(b), 457 plans: None.


SEP IRA contribution limit: The lesser of 25% of compensation or $53,000.
  • Saver's Tax Credit, income limit, single taxpayers: $30,750.
  • Saver's Tax Credit, income limit, married couples filing jointly: $61,500.
  • Health-savings account contribution limit, single contributor under age 55: $3,350.
  • Health-savings account contribution limit, single contributor age 55 and above:$4,350.
  • Health-savings account contribution limit, family coverage, contributor under age 55: $6,750.
  • Health-savings account contribution limit, family coverage, contributor age 55 and above: $7,750.
  • High-deductible health plan out-of-pocket maximum, single coverage: $6,550.
  • High-deductible health plan out-of-pocket maximum, family coverage: $13,100.
  • Section 529 college-savings account contribution limit: Per IRS guidelines, contributions cannot exceed amount necessary to provide education for beneficiary. Deduction amounts vary by state, and gift tax may apply to very high contribution amounts.
  • Section 529 college-savings account income limit: None.
  • Coverdell Education Savings Account contribution limit: $2,000 per year per beneficiary.
  • Coverdell Education Savings Account income limit, single filers: Modified adjusted gross income under $95,000--full contribution; between $95,000 and $110,000--partial contribution; more than $110,000--no contribution.
  • Coverdell Education Savings Account income limit, married couples filing jointly:Modified adjusted gross income under $190,000--full contribution; between $190,000 and $220,000--partial contribution; more than $220,000--no contribution.


2016: Important Tax Dates to Remember 
Jan. 1, 2016: New IRA, retirement-plan, and HSA contribution and income limits go into effect for 2016 tax year, as listed above.

Jan. 15, 2016: Estimated tax payments due for fourth quarter of 2015.

April 18, 2016: 

  • Individual tax returns (or extension request forms) due for 2015 tax year.
  • Estimated tax payments due for first quarter of 2016.
  • Last day to contribute to IRA for 2015 tax year (contribution limits: $5,500 under age 55; $6,500 for age 55 and above).
  • Last day to contribute to health-savings account for 2015 tax year (2015 contribution limits: $3,350 for single coverage, contributor under age 55; $4,350 for single coverage, contributor age 55 and above; $6,650 for family coverage, contributor under age 55; $7,650 for family coverage, contributor age 55 and above).

June 15, 2016: Estimated tax payments due for second quarter of 2016.

Sept. 15, 2016: Estimated tax payments due for third quarter of 2016.

Oct. 17, 2016: Individual tax returns due for taxpayers who received a six-month extension.

Dec. 31, 2016:

  • Retirees age 70 1/2 and above must take required minimum distributions from traditional IRAs and 401(k)s. 
  • Last date to make contributions to company retirement plans (401(k), 403(b), 457) for 2016 tax year. 



Christine Benz is Morningstar's director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual