01.03.17 | TAX Chat
Since the 2017 inflation rate remained low, most of the retirement plan contribution limits are unchanged. Only the limit for contributions to defined contribution plans has increased by $1,000.
|Type of limit||2017 limit|
|Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans||$18,000|
|Contributions to defined contribution plans||$54,000|
|Contributions to SIMPLEs||$12,500|
|Contributions to IRAs||$5,500|
|Catch-up contributions to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans||$6,000|
|Catch-up contributions to SIMPLEs||$3,000|
|Catch-up contributions to IRAs||$1,000|
Nevertheless, if you’re not already maxing out your contributions, you still have an opportunity to save more in 2017. And if you turn age 50 in 2017; you can begin to take advantage of catch-up contributions.
However, keep in mind that additional factors may affect how much you’re allowed to contribute (or how much your employer can contribute on your behalf). For example, income-based limits may reduce or eliminate your ability to make Roth IRA contributions or to make deductible traditional IRA contributions.
If you have questions about how much you can contribute to tax-advantaged retirement plans in 2017, contact me at HZemel@BerdonLLP.com or your Berdon advisor.
Hal Zemel, a Tax Partner at Berdon LLP, New York Accountants, has nearly 25 years in public accounting and advises businesses in the manufacturing, distribution, advertising, and real estate sectors.