The new 401(k) and IRA rules are in for 2017! 401(k) contribution limits will remain the same but here are the 5 new rules for the new year:
1. Higher IRA income limits
- Employees who earn up to $62,000 can contribute up to $5,500. Deductions are phased out for earners $62,000 to $72,000
2. Larger Roth IRA income cut offs
- Those earning less than $118,000 can contribute to Roth IRA
3. Higher income threshold for the saver’s credit
- Employees who earn less than $31,000 in 2017 may qualify
4. Special Rules for victims of Hurricane Matthew
- Victims can qualify for hardship distributions and loans from their 401(k)
5. Financial advice in your best interest
- Financial professionals who provide retirement account advice will be legally required to recommend funds that are in the client's best interest
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