2017 IRA Contribution Limit
For 2017, the IRA Contribution Limit is $5,500 (Annual contribution limit) and +$1,000 (Catch-up contribution limit, age 50 and over).
Effective 2017-01-01Source: IR-2016-141 (IRS)Verified 2026-08-29
Compared with 2016
Every figure on this page is unchanged from 2016.
| Item | 2016 | 2017 | Change |
|---|---|---|---|
| Annual contribution limit | $5,500 | $5,500 | +$0 (+0.0%) |
| Catch-up contribution limit, age 50 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who contribute to a traditional IRA or Roth IRA
What changed this year, and why
The IRA contribution limit for 2017 remains $5,500, unchanged from 2016. The additional catch-up contribution limit for individuals aged 50 and over remains $1,000.
Common questions
- How much can I contribute to an IRA in 2017?
- For 2017, you may contribute up to $5,500 to an IRA. If you are age 50 or older, you may contribute an additional $1,000.
- Is there a catch-up contribution for older savers?
- Yes. The additional catch-up contribution of $1,000 is available to individuals who are age 50 or older by the end of 2017.
The extra amount once you reach 50
Once you reach age 50 by the end of the year, you are allowed to contribute an additional $1,000 on top of the regular annual limit. For 2017, the regular contribution limit is $5,500, but if you are age 50 or older by December 31, 2017, your limit increases by that extra amount. This catch-up provision helps older workers boost their retirement savings as they approach retirement age. The catch-up amount applies to traditional IRAs. You must have reached age 50 before the close of the tax year to qualify for the higher limit for that year. If you turn 50 during the year, you can contribute the full catch-up amount for that entire year. The catch-up contribution is also subject to the compensation limit, meaning you cannot contribute more than your taxable compensation for the year, even if you are eligible for the higher dollar limit.
Contributions can be made to your traditional IRA for each year that you receive compensation and haven’t reached age 701 2.
Publication 590-A (2017), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
You cannot contribute more than you earned
For 2017, the most that can be contributed to your traditional IRA generally is the smaller of $5,500 ($6,500 if you are age 50 or older) or your taxable compensation for the year. This means you cannot put in more than you actually earned from working during the year. Compensation generally includes wages, salaries, tips, professional fees, bonuses, commissions, and self-employment income. If your taxable compensation is less than the annual limit, your contribution is capped at that lower amount. For example, if you earned less than the limit in taxable compensation, you cannot contribute more than what you earned even though the general limit is higher. This rule prevents people with little or no earned income from building up large IRA balances.
For 2017, the most that can be contributed to your tradi- tional IRA generally is the smaller of the following amounts. $5,500 ($6,500 if you are age 50 or older). Your taxable compensation (defined earlier) for the year.
Publication 590-A (2017), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
Why a workplace plan can take the deduction away
If you or your spouse is covered by an employer retirement plan, your ability to deduct traditional IRA contributions may be reduced or eliminated based on your modified adjusted gross income and filing status. The deduction begins to phase out once your income rises above a certain threshold and is completely eliminated when it reaches a higher amount. These income thresholds vary by filing status. If you are not covered by a workplace plan but your spouse is, a different set of income limits applies to determine whether your deduction is reduced. You must calculate your modified AGI using the appropriate worksheet and compare it to the phaseout ranges for your filing status to determine how much of your contribution, if any, you can deduct.
The amount of any reduction in the limit on your IRA de- duction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan.
Publication 590-A (2017), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How late you can still contribute for a year
Contributions to a traditional IRA for a given tax year can be made at any time during that year or up until the tax filing deadline. Contributions must be made by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2017 must be made by April 17, 2018. After that deadline passes, you can no longer make contributions that count for that tax year. The deadline applies regardless of whether you file for an extension on your tax return. Extensions give you more time to file your return but do not extend the time to make IRA contributions for the prior year. This rule applies to both deductible and nondeductible contributions.
Contributions must be made by due date. Contribu- tions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your re- turn for that year, not including extensions.
Publication 590-A (2017), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
The 6% tax on contributing too much
If you contribute more than the allowable amount to your traditional IRA, the excess is subject to a 6% excise tax each year it remains in the account. For 2017, the limit is $5,500, subject to your taxable compensation. Any amount above that is considered an excess contribution. You can avoid the 6% tax by withdrawing the excess (plus any earnings on it) by the due date of your tax return, including extensions. If you do not withdraw the excess, the 6% tax applies again the following year and continues each year until the excess is corrected. Excess contributions must be reported and the tax calculated on Form 5329. The tax is cumulative, meaning if an excess contribution from a prior year is not withdrawn, you owe the 6% tax again for the current year on that same excess amount.
If any part of these contributions is an excess contribution for 2016, it is subject to a 6% excise tax. You won’t have to pay the 6% tax if any 2016 excess contribution was withdrawn by April 18, 2017 (plus extensions), and if any 2017 excess contribution is withdrawn by April 17, 2018 (plus extensions).
Publication 590-A (2017), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
IR-2016-141 (IRS)
- Annual contribution limit
The deductible amount under Section 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,500.
- Catch-up contribution limit, age 50 and over
The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.