IRS Announces 2017 Plan Contribution and Benefit Limits
On October 27, 2016, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations and compensation thresholds for pension plans and other retirement-related items for tax year 2017
The Highlights of Limitations that Changed from 2016 to 2017
- For single taxpayers covered by a workplace retirement plan, the income phase-out range for deductible contributions to an IRA is $62,000 to $72,000, up from $61,000 to $71,000.
- For married couples filing jointly where the spouse making the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $99,000 to $119,000, up from $98,000 to $118,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is $186,000 to $196,000, up from $184,000 to $194,000.
- The income phase-out range for taxpayers making contributions to a Roth IRA is $186,000 to $196,000 for married couples filing jointly, up from $184,000 to $194,000. For singles and heads of household, the income phase-out range is $118,000 to $133,000, up from $117,000 to $132,000.
- The income limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $62,000 for married couples filing jointly, up from $61,500; $46,500 for heads of household, up from $46,125; and $31,000 for married individuals filing separately and for singles, up from $30,750.
For full details on the plan limits for 2017, visit the IRS guidenace detailing these items in Notice 2016-62.