The IRS has released the cost of living adjustments that affect the dollar limits for both retirement plans and health & welfare plans for the 2017 tax year.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2017.  Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income.

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000.

Click here to see a breakdown of limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan.

You may also contact your Somerset tax advisor for more information at .