IRA

Updated 2017 Contribution Limits for IRAs and Qualified Plans

January 2, 2017

Learn more about how the IRS issued Notice 2016-62 announcing the 2017 cost-of-living adjustments for IRAs and qualified plans.

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.
 

  2017
2016   Amount Increase  
 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

For more information about the 2017 contribution limits, please visit the IRS website.

In addition, you can also contact Retirement Strategies Group at (800)722-2333, ext. 3939, or e-mail us at RSG@PacificLife.com.

Picture of Steve Chmelka

Steve is a Senior Retirement Strategies Consultant with the Retirement Solutions Division at Pacific Life. He brings more than 25 years of industry experience in financial planning and wealth management, including detailed knowledge of both employer-sponsored retirement plans and retirement-planning strategies.

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