2017 IRS 401(k), 403(b) and most 457 Plan Limits
On October 27, 2016, the Internal Revenue Service announced 2017 cost-of-living adjustments applicable for qualified retirement plans and IRAs. Most plan limits will remain unchanged, while others will rise in 2017.
The announcement highlighted the following:
The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. The Internal Revenue Code (IRC) requires the limits to be adjusted annually for cost-of-living increases. INTAC is pleased to present this table for your convenience.
401(k) and 403(b) Deferral Limit
457 Deferral Limit
401(k), 403(b), 457 Catch-up Contribution Limit
SIMPLE Deferral Limit
SIMPLE Catch-up Contribution Limit
Annual Compensation Limit
Defined Benefit 415 Limit
Defined Contribution 415 Limit
Dollar Limit for HCEs
Dollar Limit for Key Employee
Social Security Taxable Wage Base
Individual Retirement AccountsThe limit on annual contributions to an individual retirement account (IRA) will stay at $5,500. The additional catch-up contribution limit for those ages 50 and over will remain $1,000. The deduction for taxpayers making contributions to a traditional IRA has been phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGIs) from $62,000 to $72,000, increased from $61,000 to $71,000 from 2016.
For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the AGI phase-out range will be $99,000 to $119,000.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction has been phased out for couples with an AGI from $186,000 to $196,000, up from $184,000 to $194,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and will remain $0 to $10,000.
For a Roth IRA, the AGI phase-out range for taxpayers making contributions will be $186,000 to $196,000 for married couples filing jointly, up from $184,000 to $194,000 in 2013. For singles and heads of household, the income phase-out range will be $118,000 to $133,000, up from $117,000 to $132,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range will remain $0 to $10,000.
The AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low- and moderate-income workers will rise to $62,00 for married couples filing jointly, up from $61,500 in 2016; $46,500 for heads of household, up from $46,125; and $31,000 for singles and married couples filing separately, up from $30,750.