518-373-4111
The IRS recently announced 2018 pension plan and retirement plan limits.
For employees with 401(k), 403(b), and most 457 retirement plans, the contribution limit will increase from $18,000 to $18,500. This increase also affects the government’s Thrift Savings plan. For those age 50 and older, the catch-up contribution limit will remain at $6,000.
Roth IRA phaseout ranges have all increased from 2017. For married couples filing jointly, the phaseout range for determining the maximum contribution to Roth IRAs is $189,000 to $199,000. For singles and heads of households, the range is $120,000 to $135,000.
The income phaseout range has increased for single taxpayers covered by a workplace retirement plan. The new range is $63,000–$73,000, a $1,000 increase from 2017. The phaseout range has increased for married couples filing jointly, where the IRA contributor is covered by a workplace plan, to $101,000-$121,000, up $2,000 from 2017. The income phaseout range has also increased for couples where the individual contributor isn’t covered by a plan, but their spouse is. This new range is now $189,000-$199,000, up $3,000 from 2017.
The AGI limit for the saver’s credit have also increased from 2017. For married couples filing jointly, the AGI limit is $63,000. For heads of household, the new limit is $47,250, and for single taxpayers and for married individuals filing separately, the new limit is $31,500.
For more information on how GTM keeps clients updated with tax and labor law changes, contact us at (518) 373-4111.
