2017 Retirement Plan Contribution Limits

Minor inflation means small, but notable, changes for the New Year.

Provided by UPAL

January 9, 2017

Each October, the Internal Revenue Service announces changes to annual contribution limits for IRAs and workplace retirement plans. Are any of these limits rising for 2017?

Will IRA contribution limits go up? Unfortunately, no. Annual contributions for Roth and traditional IRAs remain capped at $5,500 for 2017, with an additional $1,000 catch-up contribution permitted for those 50 and older. This is the fifth consecutive year those limits have gone unchanged. The SIMPLE IRA contribution limit is the same in 2017 as well: $12,500 with a $3,000 catch-up permitted.1,2

This year will bring an adjustment to IRA phase-out ranges. Your maximum 2017 contribution to a Roth IRA may be reduced if your modified adjusted gross income falls within these ranges, and prohibited if it exceeds them.1

*Single/head of household  $118,000-133,000 ($1,000 higher than 2016)

*Married couples                   $186,000-196,000 ($2,000 higher than 2016)

Will you be able to put a little more into your 401(k), 403(b), or 457 plan next year? No. The maximum yearly contribution limit for these plans stays at $18,000 for 2017. The additional catch-up contribution limit for plan participants 50 and older remains at $6,000.1  Maximum contributions to a 401(k) Profit Sharing Plan for 2017 is $54,000 or $60,000 if over age 50 and making a 401(k) catch up contribution.

Are annual contribution limits on Health Savings Accounts rising? Just slightly. In 2017, the yearly limit on deductible HSA contributions stays at $6,750 for family coverage and increases $50 to $3,400 for individuals with self-only coverage. You must participate in a high-deductible health plan to make HSA contributions. The annual minimum deductible for an HDHP remains at $1,300 for self-only coverage and $2,600 for family coverage in 2017. Next year, the upper limit for out-of-pocket expenses stays at $6,550 for self-only coverage and $13,100 for family coverage. HSAs are sometimes called “backdoor IRAs” because they can essentially function as retirement accounts for people 65 and older; at that point, withdrawals from them can be used for any purpose.3,4

Are you self-employed, with a defined benefits plan? The limit on the yearly benefit for those pension plans increases by $5,000 this year. The 2017 limit is set at $215,000.1


Kent Butcher, MBA, Registered Investment Advisor Representative

Lea Ann Nunley, Registered Investment Advisor Representative

Amy Prentice, Registered Investment Advisor Representative


This material was adapted from MarketingPro, Inc. cintent, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

1 – [10/27/16]
2 – [10/28/16]
3 – [4/29/16]
4 – [8/19/16]