How Much You Can Save in 2017
With 2017 just around the corner, now is an excellent time to plan on turbo charging your retirement savings in the New Year.
If fattening your retirement nest egg is a priority, here’s a line-up of the maximum contributions that you can make for various retirement accounts in 2017:
Traditional and Roth Individual Retirement Accounts
The contribution limits for both traditional and Roth IRAs will be $5,500. Investors who are at least 50 years of age can contribute an extra $1,000 in 2017.
Roth IRA Income Limit
Not all Americans can contribute to Roth IRAs. The phase-out range for individual taxpayers making contributions to a Roth IRA is $118,000 to $133,000. For married couples filing jointly, the income phase-out range is $186,000 to $196,000.
Traditional IRA Income Limit
The federal government imposes a limit on the amount of income that individuals who are covered by workplace plans can make while still taking the full deduction for traditional IRA contributions.
For single individuals covered by a workplace retirement plan, the phase-out range is $62,000 to $72,000.
For married couples filing jointly where a spouse who is making IRA contributions is covered by a workplace plan, the phase-out range is $99,000 to $119,000.
401(k), 403(b) and Most 457 Plans
The maximum contribution for employees in these plans is $18,000. The maximum catch-up contribution for workers who are at least 50 years old is $6,000.
SIMPLE 401(k) and SIMPLE IRA
The maximum contribution to these plans is $12,500. For individuals 50 years of age and older, the maximum catch-up contribution is $3,000.
Saver’s Credit Income Limit
The eligibility for Americans claiming the Saver’s Credit will rise slightly. This credit provides a tax break to low and middle-income taxpayers who are saving for retirement through such vehicles as a Roth IRA, 401(k), 403(b) and 457(b) plans. Depending on an individual’s adjusted gross income, a person can claim the credit for 10%, 20% or 50% of the first $2,000 contributed to a retirement account.
For married filing jointly, the income limit will be $37,000 (50% credit), $40,000 (20% credit) and $62,000 (10% credit). The limits for single individuals will be 50% of those for married filing jointly.