News & Events


Last month, the Internal Revenue Service released Notice 2017-64, which provides the annual cost-of-living adjustments and contribution limits on 401(k) plans, pension plans, and other retirement accounts for 2018.

For employees enrolled in 401(k), 403(b), most 457 plans, and the federal thrift savings plan; contribution limits have increased from $18,000 to $18,500 in 2018. Catch-up contribution limitation for employees aged 50 and over, however, remains the same at $6,000.

For those with traditional individual retirement accounts (IRAs), Roth IRA accounts, or to claim the saver's credit, below is a summary of the new income allowances that determine taxpayers' eligibility for deductible contributions in 2018:

Traditional IRAs (If covered by a retirement plan at work)

  • Single taxpayers: 2018 deduction phase-out ranges from $63,000 to $73,000, up from $62,000 to $72,000.
  • Married taxpayers filing jointly: 2018 deduction phase-out ranges from $101,000 to $121,000; an increase from $99,000 to $119,000.
  • Married taxpayers filing separately: no cost of living adjustment for 2018; remains at $0 to $10,000.
  • Uncovered taxpayer filing jointly with covered taxpayer: 2018 deduction phase-out ranges from 189,000 to $199,000; an increase from $186,000 to $196,000.

Any taxpayer contributing to an IRA account that is not covered by a workplace is not subject to deduction phase-outs.

Roth IRAs

  • Single taxpayers: 2018 contribution phase-out ranges from $120,000 to $135,000; an increase from $118,000 to $133,000.
  • Married taxpayers filing jointly: 2018 contribution phase-out ranges from $189,000 to $199,000; an increase from $186,000 to $196,000.
  • Married taxpayers filing separately: no cost of living adjustment for 2018; remains at $0 to $10,000.

Saver's Credit (Retirement Savings Contributions Credit) Income Limits

  • Married taxpayers filing jointly: 2018 limit is $63,000; an increase from $62,000.
  • Taxpayer filing head of household: 2018 limit is $47,250; an increase from $46,500.
  • Taxpayers filing single or separately: 2018 limit is $31,500; an increase from $31,000.

For 2018, the contribution limits on IRA accounts will remain the same; $5,500 with an annual catch-up limit for taxpayers 50 or older of an additional $1,000. To discuss further or if you have any questions, contact your professional at UHY LLP in one of our many locations.