2017 Contribution Limits for Tax-Advantaged Accounts / Retirement Plans

by Rachel DeCarolis, CFP ®

As we wrap up 2016 and look forward to next year, we wanted to inform you of the changes (or lack thereof) to retirement plans’ contribution limits and income ranges for tax year 2017.

Let’s begin with what is staying the same:

401(k), 403(b), 457, Thrift Savings Plans Contribution Limits

     Under Age 50              $18,000

     Age 50 and above       $24,000

Traditional IRA Contribution Limits

     Under Age 50              $5,500

      Age 50 and above      $6,500

SIMPLE IRA Salary Deferral Contribution Limits

     Under Age 50             $12,500

     Age 50 and above      $15,500

Roth IRA Contribution Limits

     Under Age 50             $5,500

     Age 50 and above      $6,500

However, many of the income phase-out ranges received a cost-of-living adjustment for 2017:

IRA Contribution Deductibility

     Single & Head of Household now     $62,000-$72,000 MAGI*

     Married Filing Jointly now                  $99,000-$119,000 MAGI

     Spouse of IRA Filing Jointly now       $186,000-$196,000 MAGI

Roth IRA Contributions (or limited to 100% of taxable compensation, whichever is less)

     Single & Head of Household now     $118,000-$133,000 MAGI

     Married Filing Jointly now                  $186,000-$196,000 MAGI

*Modified Adjustment Gross Income

We will be keeping this contributions and income limits in mind as we continue to do retirement and tax planning for our clients in 2017.

We wish our clients, colleagues, and friends the happiest of holidays and safe travels as you are visiting loved ones the next few weeks. See you next year!