Traditional IRAs

If you’re under age 50, you can contribute up to the contribution limit amount in a Roth or Traditional IRA. If you earn less than the full contribution limit amount, you can only put in up to what you make. You can divide your contribution limit between a Roth and Traditional IRA, if you are eligible to contribute to both.

Some Traditional IRA contributions are tax-deductible, but the rules are complicated. While anyone with earned income can contribute to a Traditional IRA, your contribution may not be tax-deductible if your total income is too high or you or your spouse is eligible for a retirement plan at work.

If you have specific questions about income and contribution limits, we recommend working with a financial profession or reviewing IRS publication 590.

Amount you can put into them

$5,000

Roth IRAs

If you’re under age 50, you can contribute up to the contribution limit amount in a Roth IRA. If you earn less than the full contribution limit amount, you can only put in up to what you make. You can divide your contribution limit between a Roth and Traditional IRA, if you are eligible to contribute to both.

Roth IRAs are subject to income restrictions. How much you can contribute is based on your adjusted gross income. If you (or you and your spouse, if married filing jointly) make more than the income limit, you can no longer contribute to your Roth IRA for that year. However, you can keep any existing Roth IRAs with contributions from past years.

If you have been contributing to a Roth IRA and just realized that you will be over the income limit this year, you must either withdraw the funds or re-categorize your Roth IRA contributions as Traditional IRA contributions. Withdrawing the money or moving it to a Traditional IRA account helps you avoid paying a penalty. Traditional IRAs have no income limits, but check the rules to see if you will get an up-front tax deduction from your contribution. If you need to do this, we recommend working with a financial professional.

If you have specific questions about income and contribution limits, we recommend working with a financial profession or reviewing IRS publication 590.

IRS publication 590: www.irs.gov/publications/p590/index.html

Amount you can put into them

$5,000

Income limit: filing as single

What you can contribute is reduced starting at:

$107,000

You can't contribute if you earn more than:

$122,000

Income limit: married filing jointly

$5,000

What you can contribute is reduced starting at:

$169,000

You can't contribute if you earn more than:

$179,000

401(k)s, 403(b)s and 457(b) Thrift Savings Plans

If you’re under age 50, the IRS sets a contribution limit amount for employer plans. The most common employer plans are 401(k)s, 403(b)s and 457(b) Thrift Savings Plan.

While anyone with earned income can contribute to these kinds of retirement plans, your contribution may not be tax-deductible if your total income is too high or you or your spouse are eligible for a retirement plan at work.

Many employer plans have contribution limits that do not have to do with the tax code. For example, your employer plan might only let you put 15% of your pay into your plan during a pay period. Check with your human resources or benefits manager to know the specific contribution limits of your employer plan.

Amount you can put into them, based on the IRS

$16,500

Amount you can put into them, based on your employer plan

Ask your employer

SIMPLE IRAs

A SIMPLE IRA is a type of retirement account that is available to small business owners and their employees. Employees can choose to participate in the program. Any employee contribution to a SIMPLE IRA is made pre-tax through a payroll deduction. SIMPLE IRAs are subject to the same tax rules as SEP IRAs and Traditional IRAs.

If you have specific questions about income and contribution limits, we recommend working with a financial profession or reviewing IRS publication 590.

Amount you can put into them

$11,500

SEP IRAs

If you are self-employed, you can contribute up to 20% of your income to a SEP IRA, up to a maximum of $49,000.

Income is calculated a special way, with an adjustment for half of what you pay in self-employment tax (which covers Social Security and Medicare taxes). If you are contributing to a SEP IRA, we recommend working with a financial professional to make sure you know the correct contribution amount. Your financial professional or the firm where you open up your SEP IRA account should be able to help with this calculation.

If you have specific questions about income and contribution limits, we recommend working with a financial profession or reviewing IRS publication 590.

Amount you can put into them

20 % of income or $49,000

Social Security wage base

The Social Security wage base is the maximum amount of your income that can be taxed for Social Security.

Maxium amount of income that is taxed

$106,,000

Retirement savings contribution (Saver's Credit)

The retirement savings contribution credit, or Saver’s Credit, is designed to give a tax credit to low- or moderate-income earners as an incentive for putting money away for retirement.

This credit only applies if you make less than a certain amount. The credit you can take is based on a certain percentage the contributions you make to a retirement account.

Income limit: filing as single, married filing separately or qualifying widow(er)

You can't make more than this amount:

$28,250

Income limit: filing as head of household

You can't make more than this amount:

$42,375

Income limit: married filing jointly

You can't make more than this amount (combined income):

$56,500

Percentage you can claim: filing as single, married filing separately or qualifying widow(er)

50% credit up to:

$17,000

20% credit up to:

$18,250

10% credit up to:

$28,250

Percentage you can claim: filing head of household

50% credit up to:

$25,500

20% credit up to:

$27,375

10% credit up to:

$42,375

Percentage you can claim: married filing jointly

50% credit up to:

$34,000

20% credit up to:

$36,500

10% credit up to:

$56,500