There’s good news for 401(k) savers in 2018: They can put $500 more into their plan.<\/p>\n
The IRS has announced that the 401(k)contribution limit has been raised to $18,500. That is the first increase since 2015.<\/p>\n
The new limit also applies to 403(b), Thrift Savings Plan and 457 plans.<\/p>\n
The limit on catch-up contributions for employees age 50 and over remains the same at $6,000.<\/p>\n
The deduction phase out limit was also increased. This means that if your Modified Adjusted Gross Income exceeds certain ranges, the amount you can deduct is reduced (or phased out).<\/p>\n
Single taxpayers: The phase out is $63,000 to $73,000, up from $62,000 to $72,000.<\/p>\n
Married filing jointly: Phase out rises to $101,000 to $121,000, up from $99,000 to $119,000.<\/p>\n
Individual contributors: The phase out range rises to $189,000 to $199,000, up from $186,000 to $196,000.<\/p>\n
Roth IRA and traditional IRAs<\/p>\n
There was no change in contribution limits for IRA and Roth IRA plans. The maximum you can contribute to a Roth IRA is $5,500 per year (or $6,500 if you are age 50 or older).<\/p>\n
There was a change to deduction phaseouts, though. If your Modified Adjusted Gross Income exceeds certain ranges, the amount you can deduct is reduced (or phased out).<\/p>\n
In 2018, the phase-out levels are higher. For singles or heads of households, the Modified Adjusted Gross Income range is $120,000 to $135,000.<\/p>\n
For married couples filing jointly, the range is $189,000 to $199,000. The phase-out ranges for married filing separately have not changed.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
There’s good news for 401(k) savers in 2018: They can put $500 more into their plan. The IRS has announced that the 401(k)contribution limit has been raised to $18,500. That is the first increase since 2015. The new limit also applies to 403(b), Thrift Savings Plan and 457 plans. The limit on catch-up contributions for […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32,31],"tags":[],"class_list":["post-808","post","type-post","status-publish","format-standard","hentry","category-general","category-retirement"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t