Planning ahead for 2017? There’s not much change in what you’re allowed to put into your retirement plans next year.
In fact, all the numbers you see in the table we’ve put together above are unchanged from 2016, with one exception.
The maximum combined contribution for Solo 401(k) plans goes up by $1,000, to $54,000 for workers under age 5o and $60,000 for workers age 50 or over. (You reach that amount through a combination of salary deferrals + profit sharing contributions).
This update should be a timely reminder to max out your retirement contributions for 2017.
Run a small business or are self-employed? You should not delay setting up your own plan for 2017. In most cases, it’s absolutely free and there are no administrative expenses or complicated forms. And with some plans, like the Solo 401(k), you can get up to $60,000 into your retirement account and cut your taxes by deducting the entire amount!