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|
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 or e-mail us at RSG@PacificLife.com.
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