Make it a point to review your beneficiaries, both primary and contingent for your qualified retirement plans and IRAs. It’s important that the designations have been updated to reflect major changes in your life or significant events like a birth, death, marriage or divorce. Note that these designations supersede a will.
Changes For 2017 Roth & Traditional IRAs
- The 401k contribution limit will remain at $18,000 (Age 50 can contribute an additional $6,000)(same for 403b & 457 plans)
- The contribution cap on SIMPLEs will remain at $12,500 (Age 50 can contribute and extra $3,000)
- Roth IRA - Contribution limit is $5,500 (plus an extra $1000 for age 50 )The income ceiling on Roth IRA contributions will rise from the 2016 amount, phasing out at AGIs of $186,000 to $196,000 for couples; and $118,000 to $133,000 for singles.
- Traditional IRA - Contribution limit is $5,500 (plus an extra $1000 for age 50 ). The deduction phaseout for a regular IRA will start at a higher level than 2016.
- If you are covered by a retirement plan at work, the phaseout range for a deduction is an AGI between $99,000 to $119,000 for couples, and $62,000 to $72,000 for singles. If married filing jointly with one spouse who is covered by a plan at work, the phaseout zone for deducting a contribution for the uncovered spouse will range from an AGI of $186,000 to $196,000. If neither spouse has a retirement plan at work, the contribution can be deducted fully.