How Much Can You Contribute to an Ira in 2017
The regime won't raise the limit on how much you can contribute to your retirement accounts next year.
You'll be allowed to defer upwardly to $18,000 of your salary to your 401(k) and contribute equally much as $5,500 to your IRA or Roth IRA in 2017, the same equally this year. (You tin can save a little bit more if you're getting closer to retirement age. More on that below.)
The limits are reviewed annually and sometimes increased. But because of the current low inflation rate environment, they haven't inverse since 2015.
Accounts like the 401(1000), IRA and Roth IRA are a great mode to salvage for retirement because your money is allowed to grow tax-free. Just at that place are limits on how much you tin can salve and when y'all tin can withdraw the funds.
While the contribution limits volition not alter in 2017, the government will tweak the income limits on who can make contributions to a Roth IRA and who can claim a deduction for their contribution to a traditional IRA.
Here's what you need to know.
How much can I contribute to my 401(k)?
Y'all can defer as much as $xviii,000 of your paycheck to your 401(k). If you're 50 or older, you may make a "catch-up" contribution of an additional $6,000, for a total of $24,000 next yr.
These limits likewise employ to 403(b) plans and the federal government'southward Thrift Savings Plan. They don't include the matching contribution you lot may receive from your employer.
More on 401(k)s
How much can I contribute to my IRA or Roth IRA?
Yous can contribute as much as $5,500. If you're 50 or older, yous can make a "catch-upwardly" contribution of an additional $1,000, for a total of $half dozen,500.
More on IRAs
Tin I contribute to a Roth IRA?
Not necessarily, since contributions are limited by your income. In general, you can contribute to a Roth IRA if you earn:
- less than $133,00 and are unmarried
- less than $196,000 and are married and filing jointly
- less than $10,000 and you're married and filing separately
Can I deduct the contributions I make to my IRA?
A traditional IRA comes in two varieties: deductible and nondeductible. To run across if you lot qualify for a deductible IRA, which lets y'all deduct all or role of your contributions from your taxable income, employ the following guidelines.
- If y'all don't take a retirement plan at work and you're nether 70 ½, you lot can deduct the entire amount from your taxes.
- If you lot have a retirement plan at work, y'all may fully or partially deduct your contribution only if your adjusted gross income (AGI) qualifies. For 2017, the deductions are phased out entirely for singles earning over $72,000 or couples earning over $119,000.
- If y'all're not covered by a retirement plan at piece of work, but your spouse is, you lot may qualify for a total or partial deduction if you file jointly and your AGI is below $196,000 for the 2022 taxation year.
Source: https://money.cnn.com/2016/10/27/retirement/401k-ira-contribution-2017/
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