IRS Releases Income Thresholds, Benefit And Contribution Amounts For 2017

Post by: Veronica Calvo

For 2017, the cost-of-living adjustments increased the dollar limitations on benefits and contributions. The amounts are listed below per type of retirement plan.

 

Cost Of Living Adjustments

 IRA’s

  • IRA Contribution Limit | $5,500
  • IRA Catch-Up Contribution (Age 50+) | $1,000
 401(k), 403(b), Profit-Sharing Plans, etc.                  

  • Elective Deferrals | $18,000
  • Catch-up Contributions (Age 50+) | $6,000
 SEP

  • SEP Maximum Contribution | $54,000
 Other

  • 457 Elective Deferrals | $18,000

The IRS also made changes to the phase-out income thresholds for taxpayers who contribute to a traditional IRA and/or ROTH IRA. Below are the new phase-out amounts. To view the technical guidance detailing these changes made by the IRS, view Summary of IRS Section 415.

 

Traditional IRA

Filing Status Covered/Noncovered by Workplace Retirement Plan Phase-Out Range

for 2017

Phase-Out Range

 for 2016

Single

 

Covered $62,000 – $72,000 $61,000 – $71,000
Married Filing Jointly

 

Contributor – Covered $99,000 – $119,000 $98,000 – $118,00
Married Filing Jointly

 

Contributor – Noncovered

Spouse – Covered

 

$186,000 – $196,00 $184,000 – $194,000
Married Filing Separately Contributor – Covered $0 – $10,000

 

$0 – $10,000

 

 

 

Roth IRA

Filing Status Phase-Out Range

 for 2017

Phase-Out Range

 for 2016

Single

 

$118,000 – $133,000 $117,000 – $132,000
Head of Household

 

$118,000 – $133,000 $117,000 – $132,000
Married Filing Jointly

 

$186,000 – $196,000 $184,000 – $194,000
Married Filing Separately

 

$0 – $10,000 $0 – $10,000

 To view the technical guidance detailing these changes made by the IRS, view Notice 2016-62.

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