The IRS said that 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 has increased from $18,000 in 2017 to $18,500 for 2018. However, the catch-up contribution limit for those 50 and older remains $6,000 (Notice 2017-64). Most other inflation-adjusted amounts related to pensions increased from 2017 to 2018.
The ability of taxpayers who are covered by workplace retirement plans to make a deductible individual retirement arrangement (IRA) contribution is phased out for singles and heads of household who have modified adjusted gross incomes (AGIs) between $63,000 and $73,000, a slight increase from last year.
For married couples filing jointly, where the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phaseout range is $101,000 to $121,000 for 2018. These amounts also increased slightly from 2017. When 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, also an increase from 2017.
For taxpayers making contributions to Roth IRAs, the phaseout 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. These limits were all increased from 2017.
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.