Plan Contribution and Benefit Limits

IRS Announces 2018 Plan Contribution and Benefit Limits

On October 19, 2017, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations and compensation thresholds for pension plans and other retirement-related items for tax year 2018

The Highlights of Limitations that Changed from 2017 to 2018

  • For single taxpayers covered by a workplace retirement plan, the income phase-out range for deductible contributions to an IRA is $63,000 to $73,000, up from $62,000 to $72,000.
  • For married couples filing jointly where the spouse making the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $101,000 to $121,000, up from $99,000 to $119,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is $189,000 to $199,000, up from $186,000 to $196,000.
  • The income phase-out range for taxpayers making contributions to a Roth IRA is $189,000 to $199,000 for married couples filing jointly, up from $186,000 to $196,000. For singles and heads of household, the income phase-out range is $120,000 to $135,000, up from $118,000 to $133,000.
  • The income limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $63,000 for married couples filing jointly, up from $62,000; $47,250 for heads of household, up from $46,500; and $31,500 for married individuals filing separately and for singles, up from $31,000.

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 For full details on the plan limits for 2018, visit the IRS guidenace detailing these items in Notice 2016-62.

 Plan Limits Chart 2018