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2017 Retirement Plan Limits

The maximum dollar limit on employee contributions to 401(k), 403(b) and most 457 retirement plans for 2017 remains unchanged at $18,000.

For plan participants age 50 and older, the catch-up contribution limit stands at $6,000. The maximum amount that can be contributed to a plan participant’s defined contribution account is the lesser of his or her earnings or $54,000 for 2017. This amount includes employee and employer contributions (excluding catch-up contributions) as well as any forfeitures.

Contribution and catch-up contribution limits for SIMPLE plans are $12,500 and $3,000, respectively.

INDIVIDUAL RETIREMENT ACCOUNTS

Generally, the maximum contribution that an individual can make to a traditional or Roth IRA is the smaller of $5,500 or one’s taxable compensation for 2017. For IRA owners age 50 or older before the end of 2017, the maximum contribution for 2017 is $6,500. The Roth IRA contribution limit phases out with 2017 modified adjusted gross income (AGI) between $186,000 and $196,000 (married filing jointly), $118,00 and $133,000 (single or head of household), or $0 and $10,000 (married filing separately).

As long as you have enough compensation, you can contribute to a traditional IRA. However, your IRA deduction will be phased out if you actively participate in an employer’s plan and have modified AGI between $99,000 and $119,000 (married filing jointly), $62,000 and $72,000 (single or head of household), or $0 and $10,000 (married filing separately). If you don’t participate in a plan but your spouse does, the deduction phaseout range for contributions to your IRA is between $186,000 and $196,000 of joint AGI.

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