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2017 Contribution Limits

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The beginning of the year is a great time to remind investors of the contribution limits for various savings vehicles in order for them to maximize their tax-preferential savings and avoiding, what can be, costly penalties.

Contribution limits for 2017 for various accounts are listed below:

Account Contribution Limit Catch-Up Contribution
IRAs and Roth IRAs $5,500 $1,000
401(k), 403(b), 457 plans, SARSEPs $18,000 in elective deferrals $6,000
SIMPLE Plans $12,500 $3,000
SEP IRAs Lesser of $54,000 or 25% of total compensation None
HSA Account Single: $3,400 Family: $6,750 $1,000

Please note that catch-up contributions only apply to individuals who are age 50 or older for IRAs, Roth IRAs, 401(k), 403(b), 457 plans, SARSEPs, and SIMPLE Plans and age 55 or older for HSA accounts.

Also note there is a IRA deduction phaseout for those who are active participants in an employer-sponsored retirement plan, which are the following:

  • If you are Single, Head of Household, or Married Filing Separately (and you did not live with your spouse at any time during the year):
    • If MAGI is <$62,000, you can have a full deduction up to contribution limit
    • If MAGI is > $62,000 but < $72,000, your deduction is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $72,000, no deduction is allowed
  • If you are Married Filing Jointly or Qualifying Widow(er): 
    • If MAGI is <$99,000, you can have a full deduction up to contribution limit
    • If MAGI is > $99,000 but < $119,000, your deduction is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $119,000, no deduction is allowed
  • If you are Married Filing Separately (and you lived with your spouse):
    • If MAGI is < $10,000, your deduction is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $10,000, no deduction is allowed
  • If you are a Non-active participant married to an active participant: 
    • If MAGI is <$186,000, you can have a full deduction up to contribution limit
    • If MAGI is > $186,000 but < $196,000, your deduction is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $196,000, no deduction is allowed

Also note that there is a Roth IRA phaseout depending on your Modified Adjusted Gross Income (MAGI):

  • If you are Single, Head of Household, or Married Filing Separately (and do not live with spouse):
    • If MAGI is <$118,000, you can contribute up to the limit
    • If MAGI is > $118,000 but < $133,000, your contribution limit is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $133,000, you cannot make a contribution to a Roth IRA
  • If you are Married Filing Jointly or Qualifying Widow(er): 
    • If MAGI is <$186,000, you can contribute up to the limit
    • If MAGI is > $186,000 but < $196,000, your contribution limit is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $196,000, you cannot make a contribution to a Roth IRA
  • If you are Married Filing Separately and you live with your spouse:
    • If MAGI is $0, you can contribute up to the limit
    • If MAGI is > $0 but < $10,000, your contribution limit is reduced. See Publication 590-A to calculate your reduced amount
    • If MAGI is > $10,000, you cannot make a contribution to a Roth IRA