Most working professionals have access to a 401(k) plan or a 403(b) plan at work.? Amounts contributed to these plans generally reduce your taxable earnings and always grow tax deferred.? Like 2016, you can again contribute up to $18,000 into a 401(k) or 403(b) plan through salary deferrals in 2017.
Anyone 50 or older by December 31, 2017 can contribute an extra $6,000 into their 401(k) or 403(b) plan through salary deferrals next year, for a total annual contribution of $24,000.? That is the same as what was allowed during 2016.
Many smaller employers offer their staff access to SIMPLE/IRAs instead.? SIMPLE’s work just like 401(k) plans, which means it’s up to you to fund the bulk of this retirement savings account through salary deferrals.? For 2017, the maximum contribution into your SIMPLE remains at $12,500.? Anyone 50 or older by December 31st can sock away an additional $3,000 in 2017, for a total annual contribution of $15,500, unchanged from 2016.
And if you are self-employed,?you can contribute up to 20% of your net self-employment income into a SEP IRA.? The maximum contribution into your SEP IRA for 2017 increases to $54,000, up $1,000 from 2016.
Re-Set Your 2017 Budget:? Most people won’t be able to max out these tax-advantaged retirement options unless they get on a budget and put away a set amount of money each month.? With 2016 winding down, now’s the time to start thinking about resetting your monthly retirement savings goals for 2017.
2017 Maximum Retirement Account Contributions
Retirement Savings Option
|Under the age|
|50 or older by December 31st|
401(k) or 403(b) deferrals
SIMPLE IRA deferrals
IRA or Roth IRA