The government won't raise the limit on how much you can contribute to your retirement accounts next year.
You'll be allowed to defer up to $18,000 of your salary to your 401(k) and contribute as much as $5,500 to your IRA or Roth IRA in 2017, the same as this year. (You can save a little bit more if you're getting closer to retirement age. More on that below.)
The limits are reviewed annually and sometimes increased. But because of the current low inflation rate environment, they haven't changed since 2015.
Accounts like the 401(k), IRA and Roth IRA are a great way to save for retirement because your money is allowed to grow tax-free. But there are limits on how much you can save and when you can withdraw the funds.
While the contribution limits will not change in 2017, the government will tweak the income limits on who can make contributions to a Roth IRA and who can claim a deduction for their contribution to a traditional IRA.
Here's what you need to know.
How much can I contribute to my IRA or Roth IRA?
You can contribute as much as $5,500. If you're 50 or older, you can make a "catch-up" contribution of an additional $1,000, for a total of $6,500.
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