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2016 and 2017 Tax Facts

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2016 and 2017 Tax Facts

 A few changes that will certainly be impacting many businesses and individuals.

Standard Mileage Rate for 2017

2016 and 2017 Retirement Contributions

Social Security Wage Limit 

 

Retirement Account Changes

The U.S. Internal Revenue Service (IRS)  announced cost-of-living adjustments (COLAs) affecting dollar limits for defined contribution and defined benefit retirement plans and other retirement-related items for tax year 2016. Many plan limits on contributions and benefits will not  increase in 2017.

Below are the key changes effective Jan. 1, 2017 and expiring 2016 limits.

 

2016

2017        

Employee Elective Deferrals 401(k) and 403(b); not including adjustments and catch-ups)

$18,000

 $18,000

Employee  Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans

$6,000     

 $6,000

SIMPLE Retirement Accounts

$12,500

 $12,500

SIMPLE Employee  Catch-Up Deferrals

$3,000

 $3,000

Defined Benefit Plans

$210,000  

 $215,000

Defined Contribution Plans

$53,000

 $53,000

Annual Compensation Limits

$265,000

 $270,000

Individual Retirement Accounts ("IRAs"), for individuals 49 and below

$5,500

 $5,500

Individual Retirement Accounts ("IRAs"), for individuals 50 and above

$6,500

 $6,500

 

 

 

2017 Eligibility to make Roth IRA contributions phases out for taxpayers whose adjusted gross income is between $118,000 and $133,000 for individuals and heads of household and $186,000 to $196,000 for married couples. Married Filing Separately $0-$10,000

2016 Eligibility to make Roth IRA contributions phases out for taxpayers whose adjusted gross income is between $117,000 and $132,000 for individuals and heads of household and $184,000 to $194,000 for married couples. Married Filing Separately $0-$10,000

 

 

 

Standard Mileage Rates for 2016 and 2017

The Internal Revenue Service optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. 

 

 

2016

2017

 

 

 

Standard cents per mile

.54

.535

Medical or Moving cents per mile

.19

.17

Charitible cents per mile

.14

.14

 

  

 Social Security wage base increase. 

The amount of wages or earnings subject to Social Security tax  $127,200.

 

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