Some were hoping for an increase in contribution limits in 2017.Well, during the last quarter of 2016, the IRS issued Notice 2016-62 announcing the 2017 cost-of-living-adjustments (COLA) for IRAs and qualified plans, and it appears many limits remained unchanged for a third year.
Each year, the IRS adjusts these numbers for cost-of-living increases when the statutory thresholds are met. While no change may be good because it means the cost of living didn't rise much in 2015 and 2016, it may not be good in the long term for savers because it means retirement contribution limits didn't increase for three consecutive years.
Below is a chart that compares the 2016 limits to the 2017 limits.
|Traditional and Roth IRA Contribution Limits||5,500||5,500||No Change
|Traditional and Roth IRA Catch-Up Contributions||1,000||1,000||No Change|
|SIMPLE IRA Maximum Contributions||12,500||12,500||No Change|
|SIMPLE IRA Catch-Up Contributions||3,000||3,000||No Change
|SEP-IRA Contribution Limit||54,000||53,000||$1,000|
|401(k), 403(b), and 457(b) Maximum Elective Deferrals||18,000||18,000||No Change
|401(k), 403(b), and 457(b) Catch-Up Contributions||6,000||6,000||No Change
|Internal Revenue Code 415 Defined Contribution Limits||54,000||53,000||$1,000|
Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency
For financial professional use only. Not for use with the public.