Traditional and Roth IRA Limits for 2017

| March 3, 2017

IRA Contribution Limits

The maximum amount you can contribute to a traditional IRA or Roth IRA in 2017 is $5,500 (or 100% of your earned income, if less), unchanged from 2016. The maximum catch-up contribution for those age 50 or older remains at $1,000. (You can contribute to both a traditional and Roth IRA in 2017, but your total contributions can’t exceed these annual limits.)

Traditional IRA Deduction Limits For 2017

The income limits for determining the deductibility of traditional IRA contributions in 2017 have increased. If your filing status is single or head of household, you can fully deduct your IRA contribution up to $5,500 in 2017 if your MAGI is $62,000 or less (up from $61,000 in 2016). If you’re married and filing a joint return, you can fully deduct up to $5,500 in 2017 if your MAGI is $99,000 or less (up from $98,000 in 2016). And if you’re not covered by an employer plan but your spouse is, and you file a joint return, you can fully deduct up to $5,500 in 2017 if your MAGI is $186,000 or less (up from $184,000 in 2016).

If your 2017 federal income tax filing status is:

Your IRA deduction is limited if your MAGI is between:

Your deduction is eliminated if your MAGI is:

Single or head of household

$62,000 and $72,000

$72,000 or more

Married filing jointly or qualifying widow(er)*

$99,000 and $119,000 (combined)

$119,000 or more (combined)

Married filing separately

$0 and $10,000

$10,000 or more

*If you’re not covered by an employer plan but your spouse is, your deduction is limited if your MAGI is $186,000 to $196,000, and eliminated if your MAGI exceeds $196,000.

Roth IRA contribution limits for 2017

The income limits for determining how much you can contribute to a Roth IRA have also increased for 2017. If your filing status is single or head of household, you can contribute the full $5,500 to a Roth IRA in 2017 if your MAGI is $118,000 or less (up from $117,000 in 2016). And if you’re married and filing a joint return, you can make a full contribution in 2017 if your MAGI is $186,000 or less (up from $184,000 in 2016). (Again, contributions can’t exceed 100% of your earned income.)

If your 2017 federal income tax filing status is:

Your Roth IRA contribution is limited if your MAGI is:

You cannot contribute to a Roth IRA if your MAGI is:

Single or head of household

More than $118,000 but less than $133,000

$133,000 or more

Married filing jointly or qualifying widow(er)

More than $186,000 but less than $196,000 (combined)

$196,000 or more (combined)

Married filing separately

More than $0 but less than $10,000

$10,000 or more

P.S. If you have not already contributed to, or established an IRA for 2016, there’s still time to do so. The contribution and establishment deadline is April 15th, 2017.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Bush Wealth Management and LPL Financial are separate entities.

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