The IRS announced on Thursday that the limit on elective deferral for contributions to 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan remains $18,000 for 2017, and the catch-up contribution limit for those 50 and older remains $6,000 (Notice 2016-62). Amounts for many other retirement savings plans remained the same while some increased slightly.
The ability of taxpayers who are covered by workplace retirement plans to make a deductible individual retirement arrangement (IRA) contribution is phased out for singles and heads of household who have modified adjusted gross incomes (AGIs) between $62,000 and $72,000, a slight increase from last year.
For married couples filing jointly, where the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phaseout range is $99,000 to $119,000 for 2017. These amounts also increased slightly from 2016. When an IRA contributor is not covered by a workplace retirement plan but is married to someone who is, the deduction is phased out if the couple’s income is between $186,000 and $196,000, also an increase from 2016.
For taxpayers making contributions to Roth IRAs, the phaseout range for determining the maximum contribution is $186,000 to $196,000 for married couples filing jointly and $118,000 to $133,000 for singles and heads of household. These limits are increases from 2016.
The AGI limit for the saver’s credit is $62,000 for married couples filing jointly, $46,500 for heads of household, and $31,000 for single taxpayers and for married individuals filing separately, all increases from 2016.
—Sally P. Schreiber (firstname.lastname@example.org) is a JofA senior editor.