The tax law places dollar limits on the contributions to retirement plans and Individual Retirement Accounts (IRAs) and the amount of benefits under a pension plan. Internal Revenue Code (IRC) Section 415 requires the limits to be adjusted annually for cost-of-living increases.
|IRA Contribution Limit||$6,000||$5,500||$5,500|
|IRA Catch-Up Contributions (Age 50 and over)||$1,000||$1,000||$1,000|
|IRA AGI Deduction Phase-out Starting at|
|Single or Head of Household||$64,000||$63,000||$62,000|
|SEP Minimum Compensation||$600||$600||$600|
|SEP Maximum Contribution||$56,000||$55,000||$54,000|
|SEP Maximum Compensation||$280,000||$275,000||$270,000|
|SIMPLE Maximum Contributions||$13,000||$12,500||$12,500|
|Catch-up Contributions (Age 50 and over)||$3,000||$3,000||$3,000|
|401(k), 403(b), Profit-Sharing Plans, etc.|
|Catch-up Contributions (Age 50 and over)||$6,000||$6,000||$6,000|
|Defined Contribution Limits||$56,000||$55,000||$54,000|
Source: The Internal Revenue Service, “COLA Increases for Dollar Limitations on Benefits and Contributions”
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