The Internal Revenue Service has announced that the annual contribution limit for the Thrift Savings Plan will remain at $18,000 per year in 2017. This amount also applies to 401(k), 403(b), and most 457 plans.
The IRS also said that the catch-up contribution limit for federal employees aged 50 and over who participate in the TSP will remain unchanged at $6,000.
The table below shows the progression of recent historical contribution limits to the TSP.
| Year | Annual Contribution Limit | Max Catch-Up Contribution Limit |
|---|---|---|
| 2007 | $15,500 | $5,000 |
| 2008 | $15,500 | $5,000 |
| 2009 | $16,500 | $5,500 |
| 2010 | $16,500 | $5,500 |
| 2011 | $16,500 | $5,500 |
| 2012 | $17,000 | $5,500 |
| 2013 | $17,500 | $5,500 |
| 2014 | $17,500 | $5,500 |
| 2015 | $18,000 | $6,000 |
| 2016 | $18,000 | $6,000 |
| 2017 | $18,000 | $6,000 |
The annual contribution limit to an IRA also will remain unchanged at $5,500 per year. 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.
Income eligibility requirements
One change that was made is to the income eligibility requirements for contributing to IRAs. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs) and Roth IRAs all increased for 2017.
Traditional IRA
- For single taxpayers covered by a workplace retirement plan, the phase-out range is $62,000 to $72,000, up from $61,000 to $71,000.
- For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $99,000 to $119,000, up from $98,000 to $118,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $186,000 and $196,000, up from $184,000 and $194,000.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
Roth IRA
The income phase-out range for taxpayers making contributions to a Roth IRA is $118,000 to $133,000 for singles and heads of household, up from $117,000 to $132,000. For married couples filing jointly, the income phase-out range is $186,000 to $196,000, up from $184,000 to $194,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
