The IRS recently released its 2017 update to income and contribution limits for Roth IRAs. As detailed below, the contribution limits for a Roth IRA are unchanged for 2017 — they remain at $5,500. The catch-up contribution for those 50 or older, which is not indexed for inflation, remains $1,000. The income limits to qualify for a Roth IRA, however, have risen. Here are the details.
2017 Roth IRA Contribution Limits
According to the IRS, the maximum amount that can be contributed to a traditional or Roth IRA in 2017 is as follows:
If you are under 50 years of age at the end of 2017: The maximum you can contribute to a traditional or Roth IRA is $5,500. You can split this between a traditional IRA and a Roth IRA if you want, but the combined limit is still $5,500.
In addition, the maximum deductible amount you contribute to a traditional IRA and the maximum amount you contribute to a Roth IRA may be reduced depending on your adjusted income (see below).
If you are 50 years of age or older before the end of 2017: The maximum contribution that can be made to a traditional or Roth IRA is $6,500 ($5,500 + $1,000 catch-up contribution). This limit can be split between a traditional IRA and a Roth IRA, but the combined limit is $6,500.
The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.
As noted above, these limits remain unchanged for 2017.
See this information in table form below:
|Tax Year||Contribution Limit (for taxpayers under age 50)||Contribution Limit (for taxpayers ave 50 or over by the end of the year)|
Roth IRA Income Limits
Before you get too excited about a Roth IRA, remember that your income can disqualify you from opening one. To determine your eligibility, you need to know your modified AGI (adjusted gross income) and filing status.
The income limits typically rise a bit every year because of inflation. For 2017, the Roth IRA contribution limit is phased out based on the following income levels:
- For single or head of household filers, the phase-out range is $118,000 to $133,000. If your modified AGI is more than $133,000, you cannot contribute to a Roth IRA.
- For those who are married filing jointly*, the phase-out range is $186,000 to $194,000. If your combined, modified AGI is more than $196,000, you cannot contribute to a Roth IRA in 2014.
- Finally, if your filing status is married filing separately (you live with your spouse at any time during the year), the phase-out range is $0 to $10,000. If you make more than $10,000 and file as married filing separately*, you cannot contribute to a Roth IRA in 2017.
Check out this information, along with historical income limits, in table form below:
|Tax Year||Single/Head of Household Filers||Married Filing Jointly/Qualified Widow(er) Contributions||Married Filing Separately*|
|2016||$117,000 - $132,000||$184,000 - $194,000||$0 - $10,000|
|2015||$116,000 - $131,000||$183,000 - $193,000||$0 - $10,000|
|2014||$114,000 - $129,000||$181,000 - $191,000||$0 - $10,000|
|2013||$112,000 - $127,000||$178,000 - $188,000||$0 - $10,000|
|2012||$110,000 - $125,000||$173,000 - $183,000||$0 - $10,000|
|2011||$107,000 - $122,000||$169,000 - $179,000||$0 - $10,000|
|2010||$105,000 - $120,000||$167,000 - $177,000||$0 - $10,000|
*Note: If you file married, filing separately and do not live with your spouse at any point during the tax year, you can use the limits for single/head of household filers. If you do live with your spouse at any point during the year, you’ll be limited to the $0-$10,000 phase out range.