2017 pension contribution limits announced

By Sally P. Schreiber, J.D.

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 (sschreiber@aicpa.org) is a JofA senior editor. 

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.