Section 415 of the Tax Code, which limits the allowable contribution amounts to retirement plans, is reviewed every year and cost-of-living adjustments are made. The IRS has determined that beginning in 2017, some of these limits will go up.
The following contribution amounts will remain the same, at $18,000 per year:
- 401(k) plans
- 403(b) plans
- Most 457 plans
- Thrift Savings Plans
Here are the changes you can expect for next year:
- Retirement Savings Contributions Credit (also known as the Saver’s Credit) limits will increase for single, married, head-of-household filers
- Contribution limits to pension funds will increase from $210,000 to $215,000
In addition, there are some changes to IRAs and Roth IRAs regarding phase-outs.
If you have questions about planning for retirement, please call us today. Our CPAs welcome the opportunity to discuss your options with you. To read more, see the full article from AccountingWeb.