23 Oct 2018 Pension Plan Contribution Limits
Recently the IRS announced on their Notice 2017-64that the limit on elective deferral for contributions to 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will increase to $18,500 for 2018. However, catch-up contributions for those 50 or older remain the same at $6,000 as per the Notice.
In the other hand, taxpayers covered by workplace retirement plans to make a deductible Individual Retirement Arrangement (IRA) contributions is phased out for singles and heads of household who have modified adjusted gross incomes (AGIs) between $63,000 and $73,000, an increase from last year. Married couples filing jointly, where the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is from $101,000 to $121,000 for 2018, a slight increase when contrasted with 2017. If an IRA contributor is not covered by a workplace retirement plan but is married to someone who is, the deduction is phased out if the couple’s income is between $189,000 and $199,000, an increase versus 2017 amount.
Taxpayers making contributions to Roth IRAs, the phase-out range for determining the maximum contribution is $189,000 to $199,000 for married couples filing jointly and $120,000 to $135,000 for singles and heads of household, an additional increase from 2017 numbers.
The AGI limit for the saver’s credit is $63,000 for married couples filing jointly, $47,250 for heads of household, and $31,500 for single taxpayers and for married individuals filing separately, all increases from 2017.