Would-be retirees, listen up: the IRS has released costofliving adjustmentsaffecting dollar limitations for pension plans and other retirement-relateditems for tax year 2017.

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Traditional IRA contributions are deductible under certainconditions, but if during the year either the taxpayer or theirspouse was covered by a retirement plan at work, the deduction maybe reduced or phased out until it is eliminated, depending onfiling status and income.

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For single taxpayers covered by a workplace retirement plan, thephase-out range is $62,000–$72,000, up from $61,000–$71,000. Formarried couples filing jointly, where the spouse making the IRAcontribution is covered by a workplace retirement plan, thephase-out range is $99,000–$119,000, up from $98,000–$118,000.

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For an IRA contributor not covered by a workplace retirementplan but married to someone who is covered, the deduction is phasedout if the couple’s income is between $186,000–$196,000, up from$184,000–$194,000.

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For a married individual covered by a workplace retirement planand filing a separate return, the phase-out range is not subject toan annual cost-of-living adjustment and remains $0–$10,000.

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The income phase-out range for taxpayers contributing to a RothIRA is $118,000–$133,000 for singles and heads of household; that’sup from $117,000–$132,000. For married couples filing jointly, theincome phase-out range is $186,000–$196,000, up from$184,000–$194,000. The phase-out range for a married individualfiling a separate return who makes contributions to a Roth IRA isnot subject to an annual cost-of-living adjustment and remains$0–$10,000.

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Those hoping to claim the saver’s credit for low- and moderate-incomeworkers will have to make no more than $62,000 for married couplesfiling jointly; that’s up from $61,500. For heads of household, thelimit is $46,500, up from $46,125; for singles and marriedindividuals filing separately, it’s $31,000, up from $30,750.

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Those hoping to get a jump on 401(k), 403(b), most 457 plans,and the federal government’s Thrift Savings Plans are out of luck,however, if they were hoping for higher contribution limits;existing 2016 limits remain unchanged at $18,000.

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Other unchanged limitations include the catch-up contributionlimit for employees aged 50 and over who participate in 401(k),403(b), most 457 plans, and the federal government’s Thrift SavingsPlan, which remains unchanged at $6,000, and the limit on annualcontributions to an IRA, at $5,500.

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The additional catch-up contribution limit for individuals aged50 and over is not subject to an annual cost-of-living adjustmentand remains $1,000.

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Additional information on changes, limits and technical guidanceis available in Notice 2016-62.

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