To:.......IRA Custodians/Trustees
From:..James M. Carlson, J.D. President
Date:...October 27, 2016

 

Subject: IRS Announces 2017 Limits For IRAs and Pension Plans

Today the IRS announced the 2017 limits applying to IRAs and pension plans by issuing IRS Notice 2016-62.

The Annual IRA contribution limits remain unchanged - $5,500 if the individual is younger than age 50 in 2017, and $6,500 if he or she attains age 50 or older in 2017.

The maximum SEP contribution for 2017 increases to $54,000 from $53,000.

The SIMPLE IRA contribution limits are unchanged for 2017. The maximum elective deferral contribution amount is $12,500 for a person who is younger than age 50 in 2017 and $15,500 if he or she attains age 50 or older in 2015.

The 401(k) elective deferral contribution limits are also unchanged for 2017. The maximum elective deferral contribution amount is $18,000 for a person who is younger than age 50 in 2017 and $24,000 if he or she attains age 50 or older in 2017.

The compensation ranges applying to deductible IRA contributions also increase.

• The 2017 compensation range applying to a person whose filing status is single, head of household or qualifying widower is $62,000 - $72,000 (up from $61,000 - $71,000).
• The 2017 compensation range applying to a person whose filing status is married/joint return and an active participant is $99,000 - $119,000 (up from $98,000 - $118,000).
• The 2017 compensation range applying to a person whose filing status is married/joint return but not an active participant is $186,000 - $196,000 (up from $184,000 - $194,000).
• The 2017 compensation range applying to a person whose filing status is married but filing a separate return is unchanged at $0 - $10,000.

The compensation ranges applying to Roth IRA contributions have increased for 2017.

• The 2017 compensation range applying to a person whose filing status is single, head of household or qualifying widower is $118,000 - $133,000 (up from $117,000 - $132,000).
• The 2017 compensation range applying to a person whose filing status is married/joint return is $186,000 - $196,000 (up from $184,000 - $194,000).
• The 2017 compensation range applying to a person whose filing status is married but filing a separate return is unchanged at $0 - $10,000.

The compensation ranges applying to a savers tax credit also will have some increases in 2017.

CWF will be revising its brochures, IRA Forms and the IRA Procedures Manual to incorporate the 2017 limits.

Our October newsletter containing all of the 2017 limits will be issued early next week.