retirement

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.

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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