2017 Saving Limits on Retirement Plans

Posted by on Jan 17, 2017 in Financial Focus

With 2017 well on its way, it’s a good idea to review and update your savings goals for the year.  The 401k contribution limit has remained unchanged at $18,000, with a $6,000 catch up contribution available for participants over age 50.   IRA contribution limits are also the same as 2016 but the amount of income allowable before the deduction is phased out has increased.   The income limitations for Roth IRAs also went up a bit.  The IRS updates these numbers every so often to adjust for inflation.  Don’t have a savings goal for the year?  It may be time to review your financial plan.

401(k), 403(b), and most 457 plans
2016 2017
Age 49 and under $18,000 $18,000
Age 50 and older Additional $6,000 Additional $6,000
Roth and Traditional IRA contribution limits
2016 2017
Age 49 and under Up to $5,500 (must have employment compensation) Up to $5,500 (must have employment compensation)
Age 50 and older Additional $1,000 Additional $1,000
Traditional IRA modified adjusted gross income limit for partial deductibility
2016 2017
Single $61,000 – $71,000 $62,000 – $72,000
Married – Filing joint returns $98,000 – $118,000 $99,000 – $119,000
Married – Filing separately $0 – $10,000 $0 – $10,000
Non-active participant spouse $184,000 – $194,000 $186,000 – $196,000
Roth IRA modified adjusted gross income phase-out ranges
2016 2017
Single $117,000 – $132,000 $118,000 – $133,000
Married – Filing joint returns $184,000 – $194,000 $186,000 – $196,000
Married – Filing separately $0 – $10,000 $0 – $10,000