Investment and Finance

Employers can contribute up to a quarter of the salaries that each employee earns (25%)up to an annual maximum limit. For 2017, that maximum will be $54,000, up $1,000 from its 2016 level. That's the first rise in the SEP IRA limit since 2015,
For self-employed. the 25% refers to the self-employed worker's "net earnings" from the business. The net result of the math is that the 25% limitation on "net earnings" works out to 20% of your adjusted profit after the self-employment tax adjustment

In 2016, the dollar amount under Section 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under Section 430(c)(2)(D) has been made is increased from $1,101.000 to $1,106,000..

The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is $1,000 for a maximum amount of $6,500.

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $36,000 to $36,500; the limitation under Section 25B(b)(1)(B) is increased from $39,000 to $39,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $60,000 to $61,000.

In 2014, For filing status of: single, head of household and married filing separately not living with your spouse the phase-out amount starts at $60,000 and ends at $70,000 with no deduction for MAGI more than $70,000.
For married filing jointly or qualifying widow (er)and both were covered by a retirement plan, the phase-out amount starts at $96,000 and ends at $116,000 with no deduction for MAGI more than $115,000.
For married filing jointly or qualifying widow (er)and one was covered by a retirement plan, the phase-out amount starts at $96,000 and ends at $116,000 with no deduction for MAGI more than $116,000. The uncovered spouse uses $178,000 and ends at $188,000 with no deduction for MAGI more than $188,000.
For married filing jointly or qualifying widow (er)and both were not covered by a retirement plan, the phase-out amount starts at $181,000 and ends at $191,000 with no deduction for MAGI more than $191,000.
For married filing separately the phase-out starts at 0 and ends at $10,000 with no deduction for MAGI more than $10,000

The limit on employee elective deferrals is $18,000 for 2016. The catch up contribution limit for employees 50 and over remains unchanged at $6,000.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans is $6,000, In 2017, the total maximum contribution would be $18,000 plus $6,000 catch up = $24,000.

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:
Married Filing jointly & Qualifying widow(er) $250,000
Single or Head of Household $200,000
Married filing separately $125,000

The Net Investment Income Tax went into effect on Jan. 1, 2013. The NIIT affects income tax returns of individuals, estates and trusts for their first tax year beginning on (or after) Jan. 1, 2013.
It does not affect income tax returns for the 2012 taxable year filed in 2013.