November 9, 2016 in Taxes

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It has been years since the amount you can sock away in your 401(k), 403(b) and most government plans has increased. In 2017 the contribution limit to these plans will be the same as in the previous two years: $18,000, plus a $6,000 catch-up contribution for those 50 and older.

IRA investors have been stuck with the same $5,500 limit for five years — plus a $1,000 catch-up contribution.

But other government caps that affect retirement savers will go up in 2017, and these are worth paying attention to. For instance, if you’re lucky enough to be covered by a traditional pension plan at work, the maximum amount you can collect as an annual benefit has increased to $215,000.

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And if you’re fortunate enough to have a generous employer padding your 401(k)-type plan, the maximum that can be contributed annually rose to $54,000 a year from $53,000. Self-employed entrepreneurs take heed: These limits apply to small-business retirement plans, too.

The chart below shows the IRS changes for 2017, including income limits for those who contribute to both a traditional IRA and a workplace retirement plan (or those whose spouses have access to a workplace plan), as well as the income limits for those who contribute to Roth IRAs.

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Middle- and low-income savers may qualify for a saver’s credit, worth up to $2,000.

2017 IRS limits for retirement plans
Maximum workplace retirement plan contribution amounts 2016 2017
401(k), 403(b), most 457 plans and federal Thrift Savings Plan $18,000 $18,000
Catch-up contributions in these plans for people 50 and older $6,000 $6,000
 
IRA contribution limits 2016 2017
Traditional and Roth IRAs for people younger than 50 $5,500 $5,500
Catch-up IRA contributions for people 50 and older $1,000 $1,000
Defined benefit pension plan annual benefit limits $210,000 $215,000
Annual employer limit for 401(k)-type plans, SEP IRAs and solo 401(k)s $53,000 $54,000
Annual contribution limit for SIMPLE plans $12,500 $12,500
Catch-up contribution limit for people age 50 and up $3,000 $3,000
 
Adjusted gross income phaseout range of IRA deductibility 2016 2017
Single and contributing to a workplace plan $61,000

 to $71,000

$62,000

 to $72,000

Married filing jointly when the spouse making the contribution has a workplace plan $98,000

to $118,000

$99,000

to $119,000

Married filing jointly when the contributor isn’t covered by a workplace plan but the spouse is covered $184,000

to $194,00

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$186,000

to $196,000

Married and covered by a workplace place plan but filing separately $0 to $10,000 $0 to $10,000
 
Roth IRA income eligibility phaseout 2016 2017
Single and head of household filers $117,000

to $132,000

$118,000

to $133,000

Married filing jointly or qualified widow/widowers $184,000

to $194,000

$186,000

to $196,000

Married filing separately $0

to $10,000

$0

to $10,000

 
Retirement savings contribution credit, or saver’s credit, income limits 2016 2017
Married filing jointly couples $61,500 $62,000
Heads of household $46,125 $46,500
Single taxpayers $30,750 $31,000

Source: Internal Revenue Service

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