Roth

2018 Retirement Plan Limitations

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**2.7.2018 Update: The IRS recently announced that the Tax Cuts and Jobs Act of 2017 did not change 2018 retirement plan limitations. The announcement is available here. Below is my previous blog post on these amounts.

401(k) and 403(b) Contributions (elective deferrals): Employee contribution limit increased to $18,500 (up from $18,000), plus $6,000 catch-up contribution if aged 50 and over. (There is no change to the catch-up amount.)

401(k) and 403(b) Contributions (employee + employer): Increased to $55,000 (up from $54,000)

401(k) and 403(b) Annual Compensation Limit: Increased to $275,000 (up from $270,000)

Traditional IRA and Roth IRA Contributions: No change; remains at $5,500, plus a $1,000 catch-up contribution if aged 50 and over.

SIMPLE IRA Contributions: No change; remains $12,500.

Traditional IRA (if also covered by an employer retirement plan) Income Phase-outranges:

  • Single taxpayers at $63,000 to $73,000 (up from $62,000 to $72,000)
  • Married taxpayers filing jointly at $101,000 to $121,000 (up from $99,000 to $119,000) and applies if the contributor is also the one covered under employer retirement plan
  • Married taxpayers filing jointly at $189,000 to $199,000 (up from $186,000 to $196,000) and applies if the contributor is not covered under an employer retirement plan, but the spouse is covered under a plan
  • Married taxpayers filing separately at $0 to $10,000 (no change)

Roth IRA Income Phase-out Ranges:

  • Single taxpayers at $120,000 to $135,000 (up from $118,000 to $133,000)
  • Married taxpayers filing jointly at $189,000 to $199,000 (up from $186,000 to $196,000)
  • Married taxpayers filing separately at $0 to $10,000 (no change)

Saver’s Credit (Retirement Savings Contributions Credit) Income Limits:

  • Single taxpayers at $31,500 (up from $31,000)
  • Married taxpayers filing jointly at $63,000 (up from $62,000)
  • Heads of household taxpayer at $47,250 (up from $46,500)
  • Married taxpayers filing separately at $31,500 (up from $31,000)

More details available with IR-2017-177, dated October 19, 2017,  or IRS Notice 2017-64 on the IRS website.