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2017 Retirement Plan Maximums & Limits/Saver's Credit


The Internal Revenue Service (IRS) has announced the dollar maximums and limits for qualified pension plans for 2017. These reflect the applicable cost-of-living adjustments required by the federal tax law and provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that are effective for the 2017 tax year only.

Sections 1–3 highlight contribution maximums and limits established by the IRS for various retirement plans. All dollar amounts are effective January 1, 2017; changes, if any, from 2016 are noted. Section 4 highlights annual compensation amounts for highly compensated employees and key employees in a top-heavy plan. Section 5 highlights the Saver's Credit tax credit for 2017.

1. Retirement Plan Deferral Maximums for 2017



The following table highlights contribution maximums established by the IRS for various retirement plans. All dollar amounts, which are unchanged from 2016, are effective January 1, 2017.

PlanMaximum Elective Deferral or Contribution Limit1Increase from 2016Age 50 and Older Additional
"Catch-Up" Contribution Limit
TDA, 403(b) Thrift
and 401(k)2
$18,000 unchanged $6,0003
SIMPLE IRA and
SIMPLE 401(k)
$12,500 unchanged $3,000
Traditional IRA
and Roth IRA
$5,500 unchanged $1,000
Section 457(b)
Eligible Deferred Compensation
$18,000 unchanged $6,0003

1
If annual compensation is less than the applicable limits shown, then the maximum contribution is limited to 100 percent of compensation.

2
If you contribute to a TDA, 403(b) Thrift and/or 401(k), the total amount contributed to all plans may not exceed $18,000 ($24,000 to all plans, if age 50 or older).

3
Tax-Deferred Annuity, 403(b), 401(k) and Governmental Section 457(b) Plans. Section 457(b) Eligible Deferred Compensation Plan participants can make a special catch-up contribution if they are within three years of their normal retirement age.

2. Retirement Plan Compensation Limits for 2017



PlanAnnual Compensation Limit
for Contribution Purposes
Increase from 2016
TDA, 403(b) Thrift and 401(k), Defined Benefit and Defined Contribution Plans $270,000 maximum compensation $5,000
SEP participant requirements $600 minimum compensation unchanged
SEP discrimination requirements $265,000 maximum compensation unchanged
Roth IRA Contribution limit is reduced or eliminated based on the amount by which the taxpayer's Adjusted Gross Income (AGI) minus an "applicable AGI amount" exceeds $15,000 ($10,000 for married taxpayers filing a joint return).
Applicable AGI amounts for 2017:
$186,000 to $196,000 (married filing joint return)
$0 to $10,000 (married filing separate return)
$118,000 to $133,000 (all other taxpayers)
$2,000
unchanged
$1,000
Traditional IRA

Deduction for contribution is reduced or eliminated for an active participant in an employer-sponsored retirement plan, based on the amount by which the taxpayer's AGI minus an "applicable AGI amount" exceeds $10,000 ($20,000 for an active participant who is a married taxpayer filing a joint return).

Applicable AGI amounts for 2017 for active participants:
$99,000 to $119,000 (married filing joint return)
$0 to $10,000 (married filing separate return)
$62,000 to $72,000 (all other taxpayers)

For a married taxpayer filing a joint return who is not an active participant in an employer-sponsored retirement plan, but whose spouse is, the $10,000 amount mentioned above is not increased to $20,000 and the "applicable AGI amount" for 2017 is $186,000 ($2,000 increase from 2016).









$1,000
unchanged
$1,000

These are limits established by the Internal Revenue Code. In some cases, employers may set lower annual limits for your plan. In addition, these limits are generally applied in the aggregate.

The elective deferral limit applies to all voluntary salary reduction amounts made by an employee to any plan. The defined contribution plan annual additions limit applies to all annual additions to all defined contribution plans (including 401(k) and profit-sharing plans) and SEP-IRAs of the same employer. Additional limits may apply, depending on the type of plan, which may further limit elective deferrals and/or annual additions. Contribution limits are not necessarily equal to employer deduction limits, and generally, these plans also further limit contributions for taxable employers to the deduction limit.

Similarly, the limits on annual benefits in a defined benefit plan applies to all defined benefit plans of the same employer and cannot exceed 100% of a participant's average compensation, if less. This annual benefit limit is expressed as a non-refund life annuity at age 65 and is reduced for different forms and ages and for participation of less than 10 years, and may be further reduced if certain provisions are applicable, such as cost-of-living adjustment features.

3. Retirement Plan Dollar Limits for 2017



PlanApplicable MaximumIncrease from 2016
Defined Benefit $215,000 on annual benefits* $5,000
Defined Contribution $54,000 or 100% of compensation, whichever is less, on contributions $1,000

*Or 100% of compensation for high 3 years, whichever is less.

These are limits established by the Internal Revenue Code. In some cases, employers may set lower annual limits for their plan(s). In addition, these limits are generally applied in the aggregate.

The defined contribution plan annual additions limit applies to all annual additions to all defined contribution plans (including 401(k) and profit-sharing plans) and SEP-IRAs of the same employer and cannot exceed 100% of a participant's average compensation, if less.

4. Retirement Plan Annual Compensation Amounts for 2017



PlanApplicable MaximumIncrease from 2016
Definition of Highly Compensated Employee $120,000 unchanged
Definition of Key Employee in a Top-Heavy Plan $175,000 $5,000

These are amounts established by the Internal Revenue Code.


5. Saver's Credit for 2017



The Saver's Credit is a tax credit of up to $1,000 ($2,000 if married filing jointly) for low- and moderate-income taxpayers who contribute to a traditional or Roth IRA, 401(k), 403(b), governmental 457 or SIMPLE IRA plan. The credit is equal to 50%, 20%, 10% or 0% of your contribution, depending on your adjusted gross income. The following table shows the income limits to claim the credit for 2017.

Credit Rate
(% of contribution)
Married
Filing Jointly
Head of
Household
All Other
Filers*
50% Up to $37,000 Up to $27,750 Up to $18,500
20% $37,001-$40,000 $27,751-$30,000 $18,501-$20,000
10% $40,001-$62,000 $30,001-$46,500 $20,001-$31,000
0% $62,001 & up $46,501 & up $31,001 & up

*Single, married filing separately or qualifying widow(er).

The tax information contained herein is for informational purposes only.You should consult your advisor or attorney regarding your individual circumstances.


Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling .
Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract's other features before making a decision.


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