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IRS Announces IRA Contribution Limits for 2017
December 20, 2016The IRS has released 2017 IRA limits—with a few changes to modified adjusted gross income limits—find out how your contributions will change in the New Year.
The IRS has released 2017 IRA limits—with a few changes to modified adjusted gross income limits—find out how your contributions will change in the New Year.
Individual Retirement Plan Limits 2017
| Contribution Limits | 2017 | 2016 | 2015 |
|---|---|---|---|
| IRA Contribution Limit | $5,500 | $5,500 | $5,500 |
| IRA Catch-Up Contributions | $1,000 | $1,000 | $1,000 |
If you or your spouse participate in an employer-sponsored retirement plan, these MAGI (Modified Adjusted Gross Income) phase-out ranges allow you to deduct contributions. If you fall within the following ranges, you can deduct a partial contribution but if not, you cannot deduct your contribution.
(Numbers marked bold have changed from 2016)
| Traditional IRA MAGI Limits | 2017 | 2016 | 2015 |
|---|---|---|---|
| Married filing jointly; a spouse who participates in an employer-sponsored plan | $99,000-$119,000 | $98,000-$118,000 | $98,000-$118,000 |
| Married filing jointly; a spouse who does not participate in an employer sponsored plan | $186,000 - 196,000 | $184,000-$194,000 | $183,000-$193,000 |
| Single or Head of Household | $62,000 - 72,000 | $61,000 - $71,000 | $61,000 - $71,000 |
For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution.
| Roth IRA MAGI Limits | 2017 | 2016 | 2015 |
|---|---|---|---|
| Married filing jointly | $186,000-$196,000 | $184,000-$194,000 | $183,000-$193,000 |
| Single or Head of Household | $118,000-$133,000 | $117,000-$132,000 | $116,000-$131,000 |
As you’ll notice, the contribution limits and catch-up contributions remain the same for the New Year, as they have since 2013. The annual IRA limit is adjusted based on inflation every year, typically increasing in $500 increments, but the amount has remained stagnant since 2013. Instead, only income limits have increased for 2017.
Questions on these limits? Contact me or any member of our Tax Services Team.
