What You Need to Know About Making IRA and 401(k) Contributions in 2017

Contribution limits won't change, but income limits will increase slightly.

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How much can I contribute to my IRA and 401(k) in 2017?

The contribution limits aren't changing in 2017. You'll still be able to contribute up to $18,000 to a 401(k), 403(b), 457 or Thrift Savings Plan. If you're 50 or older anytime in 2017, you can also make a catch-up contribution of up to $6,000, bringing your total to $24,000.

The income limits to qualify for the retirement savers’ tax credit are also rising by a very small amount. To be eligible for the credit, income must be less than $31,000 for single filers, $46,500 for heads of household or $62,000 for married couples filing jointly in 2017. The credit can be worth up to $1,000 per person, or up to $2,000 for married couples, with the size of the credit based on income and the amount of money contributed to a retirement-savings plan, such as a 401(k) or IRA. The lower your income, the larger the credit. If your income is just below the cutoff, the credit is worth up to $200 per person or $400 for a married couple. For more information about the savers' credit, see Who Qualifies for the Retirement Savers' Tax Credit?

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.