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John Burnside

Contribution Limits to Retirement Accounts 2018

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In 2018, individuals can contribute the following amounts:

Maximum Retirement Contributions

Plan Type Age <50 Age >=501
Employer2 $18,500 $24,500
IRA $5,500 $6,500
Total $24,000 $31,000

 

1 Individuals that are 50 and over can contribute an additional $6000 to employer plans and $1000 to IRAs.

2 401ks, 403bs, most 457s, and Thrift Savings Plans (TSP)

 

 

Notes

 

Roth IRA Phaseouts

  • Single: The maximum amount can be contributed to a Roth IRA if modified adjusted gross income (MAGI) is less than $120,000.  The contribution amount will phase out completely once MAGI tops $135,000.
  • Married Couples: The maximum amount can be contributed if MAGI is less than $189,000 , with the amount phasing out above $199,000.

 

Traditional IRA Contribution Phaseouts

  • Single: The maximum amount can be contributed to a Traditional IRA if modified adjusted gross income (MAGI) is equal to or less than $63,000.  The contribution amount will phase out completely once MAGI tops $73,000.
  • Married Couples: The maximum amount can be contributed if MAGI is equal to or less than $101,000 , with the amount phasing out completely once joint income reaches $121,000.
  • If an individual is not covered by an employer retirement plan at work, they can deduct the entire contribution amount, regardless of income amount.

 

Deadlines for 2018 Contributions

  • IRA: April 15th, 2019
  • 401k: Technically April 15th, 2019 but most employers only allow payroll withdrawals.  Which makes the deadlines 12/31/2018.

Age Cut-offs for Contributions

  • Traditional IRA: You can no longer contribute to a traditional IRA starting in the calendar year you turn age 70½.
  • Roth IRA: No age restrictions
  • 401k: No age restrictions
  • SEP IRA: No age restrictions

 

Disclaimer

If legal, tax, or other professional advice is required, the services of a competent professional should be sought. This post should not be considered investment advice. This information is subject to change and/or be edited. Past performance is not a guarantee of future results.

IRS Publication 590a.pdf

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