Contributions to Retirement Accounts
A Q&A with a financial expert.
Q: How much can I contribute to my IRA and 401(k) in 2017?
A: The contribution limits aren’t changing in 2017. You’ll still be able to contribute up to $18,000 to a 401(k), 403(b), 457 or Thrift Savings Plan. If you’re 50 or older anytime in 2017, you can also make a catch-up contribution of up to $6,000, bringing the total to $24,000.
The IRA contribution limits remain the same for 2017, too: $5,500, plus an extra $1,000 catch-up contribution if you’re 50 or older.
The income limits to qualify to make Roth IRA contributions are increasing very slightly — by $1,000 for single filers and $2,000 for married couples filing jointly. If you’re a single filer, you’ll be able to contribute the full amount to a Roth IRA in 2017 if your adjusted gross income is less than $118,000, and the contribution amount phases out completely if you earn more than $133,000. Joint filers can contribute the full amount if their income is less than $186,000 in 2017, with the contribution amount phasing out completely if they earn more than $196,000.
The income limits to qualify for the retirement savers’ tax credit are also rising by a very small amount. To be eligible for the credit, income must be less than $31,000 for single filers, $46,500 for heads of household or $62,000 for married couples filing jointly in 2017. The credit can be worth up to $1,000 per person, or up to $2,000 for married couples, with the size of the credit based on income and the amount of money contributed to a retirement-savings plan, such as a 401(k) or IRA. The lower your income, the larger the credit. If your income is just below the cutoff, the credit is worth up to $200 per person or $400 for a married couple.
Kimberly Lankford is a contributing editor to Kiplinger’s Personal Finance magazine. Send your questions and comments to firstname.lastname@example.org. And for more on this and similar money topics, visit Kiplinger.com.
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