Individual Retirement Accounts

2017 Contribution Limits

These limits go into effect on January 1, 2017, and are applicable to 2016 contributions.  For 2017, the IRA contribution limit is $5,500.  There was no change to the Coverdell ESA contribution limits.
TYPE OF CONTRIBUTION
2016
CONTRIBUTION
LIMITS
2016
DEADLINES
2017
CONTRIBUTION
LIMITS
2017
DEADLINES**
TRADITIONAL IRA
$5,500
APRIL 18, 2016
$5,500
APRIL 18, 2017
ROTH IRA
$5,500
APRIL 18, 2016
$5,500
APRIL 18, 2017
CATCH-UP*
$1,000
($6,500 MAXIMUM)
APRIL 18, 2016
$1,000
($6,500 MAXIMUM)
APRIL 18, 2017
COVERDELL
$2,000
APRIL 18, 2016
$2,000
APRIL 18, 2017

*For IRA holders 50 or older by December 31st of contribution year.

**The tax deadline was pushed back nationwide due to the Emancipation Day holiday observed in the District of Columbia.

Choose the IRA that meets your needs

Relax and watch your money grow, when you're tucking it away in an Individual Retirement Account. Our Traditional, Roth or Coverdell Education Savings Account IRAs can meet your future financial needs.

Follow these general rules of thumb in chosing the right IRA*:

  1. Choose a Roth IRA if you don't need the tax break right now. It's a more flexible investment because:
    1. You can withdraw regular contributions at any time, tax-free and penalty-free.
    2. You do not have to take mandatory distributions at age 70 1/2.
    3. Earnings are tax-free if account is open 5 yrs and withdrawn for a qualifed reason.
  2. Choose a traditional IRA if you want the tax deduction right now. It also makes sense if you anticipate paying taxes at a significantly lower rate in retirement.

Coverdell ESAs offer tax-free distributions for certain qualified education expenses and unlike section 529 plans, can be used for elementary and high school expenses at most public, private and parochial schools.

2017 IRA Contribution and Deduction Limits

2017 Combined Traditional and Roth IRA Contribution Limits:
If you are under 50 years of age at the end of 2017: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $5,500 or the amount of your taxable compensation for 2017. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $5,500.The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.

If you are 50 years of age or older before the end of 2017:
The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,500 or the amount of your taxable compensation for 2017. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $6,500. The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income. www.irs.gov

For more information on IRA changes or to open an IRA at Diamond Valley Federal Credit Union, email DVFCU or call 425-5152.

 

Home | The Credit Union | Member Services | Lending Services | Hours & Locations | Privacy Policy | Contact Us
Copyright Diamond Valley Federal Credit Union. All rights reserved. Website design by Media Mix Communications.

Equal Housing LenderFederally Insured by NCUA