New Retirement Plan Contribution Limits for 2018 - A Global Tax Blog Article from KLR

Global Tax Blog

New Retirement Plan Contribution Limits for 2018

posted Nov 14, 2017 by Peri Ann Aptaker, Esq., CPA/PFS, CFP® in the Global Tax Blog

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The Internal Revenue Service has issued the annual cost of living adjustments for 401(k) contributions, pension plans, and other retirement related matters. There are a few changes to modified adjusted gross income limits that you’ll want to note.

The limits

Individual Retirement Plan Limits 2018

Contribution Limits

2018

2017

2016

IRA Contribution Limit

$5,500

$5,500

$5,500

IRA Catch-Up Contributions

$1,000

$1,000

$1,000

*The catch-up contribution limit for employees ages 50 and over who contribute to 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

Phaseout ranges for 2018:

Traditional IRA MAGI Limits

2018

2017

2016

Married filing jointly; a spouse who participates in an employer-sponsored plan

$101,000-$121,000

$99,000-$119,000

$98,000-$118,000

Married filing jointly; a spouse who does not participate in an employer sponsored plan

$189,000-$199,000

$186,000 - 196,000

$184,000-$194,000

Single or Head of Household

$63,000-$73,000

$62,000 - 72,000

$61,000-$71,000

For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution.

Roth IRA MAGI Limits

2018

2017

2016

Married filing jointly

$189,000-$199,000

$186,000-$196,000

$184,000-$194,000

Single or Head of Household

$120,000-$135,000

$118,000-$133,000

$117,000-$132,000


As you’ll notice, the contribution limits and catch-up contributions remain the same for the New Year, as they have since 2013. The annual IRA limit is adjusted based on inflation every year, typically increasing in $500 increments, but the amount has remained stagnant since 2013. Instead, only income limits have increased for 2018.The contribution limit for workers who are enrolled in 401(k), 403(b), most 457(b), and the federal government’s Thrift Savings Plan has changed from $18,000 to $18,500.

Contact our Tax Team for more information.