IRA Contribution Limits
The maximum amount you can contribute to a traditional IRA or Roth IRA in 2017 is $5,500 (or 100% of your earned income, if less), unchanged from 2016. The maximum catch-up contribution for those age 50 or older remains at $1,000. (You can contribute to both a traditional and Roth IRA in 2017, but your total contributions can’t exceed these annual limits.)
Traditional IRA Deduction Limits for 2017
The income limits for determining the deductibility of traditional IRA contributions in 2017 have increased. If your filing status is single or head of household, you can fully deduct your IRA contribution up to $5,500 in 2017 if your MAGI is $62,000 or less (up from $61,000 in 2016). If you’re married and filing a joint return, you can fully deduct up to $5,500 in 2017 if your MAGI is $99,000 or less (up from $98,000 in 2016). And if you’re not covered by an employer plan but your spouse is, and you file a joint return, you can fully deduct up to $5,500 in 2017 if your MAGI is $186,000 or less (up from $184,000 in 2016).
If your 2017 federal income tax filing status is: | Your IRA deduction is limited if your MAGI is between: | Your deduction is eliminated if your MAGI is: |
Single or head of household | $62,000 and $72,000 | $72,000 or more |
Married filing jointly or qualifying widow(er)* | $99,000 and $119,000 (combined) | $119,000 or more (combined) |
Married filing separately | $0 and $10,000 | $10,000 or more |
*If you’re not covered by an employer plan but your spouse is, your deduction is limited if your MAGI is $186,000 to $196,000, and eliminated if your MAGI exceeds $196,000.
Roth IRA Contribution Limits for 2017
The income limits for determining how much you can contribute to a Roth IRA have also increased for 2017. If your filing status is single or head of household, you can contribute the full $5,500 to a Roth IRA in 2017 if your MAGI is $118,000 or less (up from $117,000 in 2016). And if you’re married and filing a joint return, you can make a full contribution in 2017 if your MAGI is $186,000 or less (up from $184,000 in 2016). (Again, contributions can’t exceed 100% of your earned income.)
If your 2017 federal income tax filing status is: | Your Roth IRA contribution is limited if your MAGI is: | You cannot contribute to a Roth IRA if your MAGI is: |
Single or head of household | More than $118,000 but less than $133,000 | $133,000 or more |
Married filing jointly or qualifying widow(er)* | More than $186,000 but less than $196,000 (combined) | $196,000 or more (combined) |
Married filing separately | More than $0 but less than $10,000 | $10,000 or more |
Employer Retirement Plans
Most of the significant employer retirement plan limits for 2017 remain unchanged from 2016. The maximum amount you can contribute (your “elective deferrals”) to a 401(k) plan in 2017 is $18,000. This limit also applies to 403(b), 457(b), and SAR-SEP plans, as well as the Federal Thrift Plan. If you’re age 50 or older, you can also make catch-up contributions of up to $6,000 to these plans in 2017 (special catch-up limits apply to certain participants in 403(b) and 457(b) plans).
If you participate in more than one retirement plan, your total elective deferrals can’t exceed the annual limit ($18,000 in 2017 plus any applicable catch-up contribution). Deferrals to 401(k) plans, 403(b) plans, SIMPLE plans, and SAR-SEPs are included in this aggregate limit, but deferrals to Section 457(b) plans are not. For example, if you participate in both a 403(b) plan and a 457(b) plan, you can defer the full dollar limit to each plan—a total of $36,000 in 2017 (plus any catch-up contributions).
Plan Type | Annual Dollar Amount | Catch-Up Limit |
401(k), 403(b), governmental 457(b), SAR-SEP, Federal Thrift Plan | $18,00 | $6,000 |
SIMPLE plans | $12,500 | $3,000 |
If you have questions or need assistance,contact the experts at Henssler Financial:
- Experts Request Form
- Email:experts@henssler.com
- Phone: 770-429-9166
Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing.Henssleris not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
