2016-2017 401k and IRA Limits

Posted by Madison on December 6, 2015

The 2017 IRA limits and 401k contribution limits will not change. It’s time to start planning your contributions for next year.

The 401k limits and IRA limits are determined based on inflation, but can only increase in $500 increments.

However, the 2017 social security wage base increased by $8,700.

These are the limits for the traditional IRA and the 401k, although the Roth 401ks and IRA limits will be the same as the traditional 401k and traditional IRAs.

2016 & 2017 Contributions

Here are the 2016 & 2017 contribution limits for IRAs and 401ks:

401k Contributions 2016 2017
Maximum $ 18,000 $ 18,000
Catch-up 50 and over $ 6,000 $ 6,000
IRA Contributions 2016 2017
Maximum $ 5,500 $ 5,500
Catch-up 50 and over $ 1,000 $ 1,000

You can make your 2017 contributions as early as January 1 for the whole year. If you contribute 2017 IRA money between January 1 and April 18, be sure to designate calendar year 2017 if you have already contributed the maximum for 2016.

Since the 2017 limits will stay the same for both the IRA and the 401k, if you use automatic investments, you probably won’t have to make any changes. However, it’s always best to doublecheck your deferral rates.

To maximize your IRA investments, make sure you aren’t paying extra fees in your IRA. You can transfer your IRA to another broker to avoid annual fees. We use Vanguard for our IRAs.

2016 Contributions

2016 IRA contributions can be made until April 18, 2017, the same as the tax deadline.

401k contribution deadlines are based on the calendar year. 2016 401k contributions were due at the end of the year.

More Retirement Topics

You can get my latest articles full of valuable tips and other information delivered directly to your email for free simply by entering your email address below. Your address will never be sold or used for spam and you can unsubscribe at any time.


Comments to 2016-2017 401k and IRA Limits

  1. The 401k contribution limits were increased as part of the 2001 tax cuts. These tax cuts are expiring unless they are extended. Are the contribution limits impacted by this? I know in 2006, the IRA increase from $2000 to $4000 was made permanent, but I’m not sure about the 401k limit.


Leave a Reply

Your email address will not be published. Required fields are marked *

Previous article: «
Next article: »