Key Retirement and Tax Numbers for 2017

Continental Breakfast IRAEvery year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans, thresholds for deductions and credits, and standard deduction and personal exemption amounts. Here are a few of the key adjustments for 2017.


Retirement Plans

Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $18,000 in compensation in 2017 (same as in 2016); employees age 50 and older can defer up to an additional $6,000 in 20127 (the same as 2016).


Employees participating in a SIMPLE retirement plan can defer up to $12,500 in 2017 (the same as in 2016), and employees age 50 and older will be able to defer up to an additional $3,000 in 2017 (the same as in 2016).



The limit on annual contributions to an iRA remains unchanged at $5,500 in 2017, with individuals age 50 and older able to contribute an additional $1,000. For individuals who are covered by a workplace retirement plan, the deduction for contributions to a traditional IRA is phased out for the following modified adjusted gross income (AGI) ranges:

Single/head of household (HOH) $61,000 - $71,000 $62,000 - $72,000
Married filling jointly (MFJ) $98,000 - $118,000 $99,000 - $119,000
Married filling separately (MFS) $0,000 - $10,000 $0,000 - $10,000

Note: The 2017 phaseout range is $186,000 - $196,000 (up from $184,000 - $194,000 in 2016) when the individual making the IRA contribution is not covered by a workplace retirement plan but is filing jointly with a spouse who is covered.

The modified AGI phaseout ranges for individuals making contributions to a Roth IRA are: 

Single/ (HOH) $117,000 - $132,000 $118,000 - $133,000
(MFJ) $184,000 - $194,000 $186,000 - $196,000
(MFS) $0,000 - $10,000 $0,000 - $10,000

Estate and gift tax

The annual gift tax exclusion remains at $14,000.

The gift estate tax basic exclusion amount for 2017 is $5,490,000, up from $5,450,000 in 2016.

Personal exemption

The personal exemption amount remains at $4,050. For 2017, personal exemptions begin to phase out once AGI exceeds $261,500 (single), $287,650 (HOH), $313,800 (MFJ) or $156,900 (MFS).

Note: These same AGI thresholds apply in determining if itemized deductions may be limited. The corresponding 2016 threshold amount were $259,400 (single) $285,350 (HOH), $311,300 (MFJ), and $155,650 (MFS).

Standard deduction:

These amounts have been adjusted as follows:

Single $6,300 $6,350
(HOH) $9,300 $9,350
(MFJ) $12,600 $12,700
(MFS) $6,300 $6,350

Note:  The 2016 and 2017 additional standard deduction amount (age 65 or older, or blind) is $1,550 for single/HOH or $1,250 for all other filing statuses. Special rules apply if you can be claimed as a dependent by another taxpayer.

Alternative minimum tax (AMT)

AMT amounts have been adjusted as follows:

Maximum AMT exemption amount
Single (HOH) $53,900 $54,300
(MFJ) $83,300 $84,500
(MFS) $41,900 $42,250
Exemption phaseout threshold
Single (HOH) $119,700 $120,700
(MFJ) $159,700 $160,900
(MFS) $79,8500 $80,450
26% on AMTI* up to this amount, 28% on AMTI above this amount
(MFS) $93,150 $93,900
All others $186,300 $187,800
*Alternative minimum taxable income

We can help you develop a plan to reach your financial goals for retirement. To start planning for your retirement years, contact one of our financial advisors at (305) 631-6410 to schedule a free consultation or fill out the form below.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. CNB Wealth Management is a trade name of Continental National Bank. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value. NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.

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