The IRS announced on October 27 that the limit on elective deferral for contributions to 401(k) plans, 403(b) plans and most 457 plans, as well as the federal government’s Thrift Savings Plan remains at $18,000 for 2017 and the catch-up contribution limit for those 50 and older remains at $6,000. Amounts for many other retirement savings plans remained the same while some increased slightly.
The ability of taxpayers who are covered by workplace retirement plans to make a deductible individual retirement arrangement (IRA) contribution is phased out for singles and heads of households who have modified adjusted gross incomes between $62,000 and $72,000, a slight increase.
For married couples filing jointly, where the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phaseout range is $99,000 to $119,000 for 2017.
VACo Contact: Vicky Steinruck, CPA