In this study, we uncovered a novel variant at 16p11.2, rs4583255[T], showing genome-wide significant association with psychosis (OR = 1.08, P = 6.6 × 10−11). In follow-up samples, ORs were similar for schizophrenia and bipolar disorder (OR = 1.06 and 1.08, respectively), and association was significant for both (P = 0.0011 and P = 0.00026, respectively). Thus, rs4583255[T] is a compelling example of a genetic variant that confers risk across traditional diagnostic boundaries.