The Internal Revenue Service has announced the 2018 contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. In Notice 2017-64, the IRS explained that the contribution limit for such plans will increase to $18,500 from $18,000 in 2017. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan will remain at $6,000 in 2018.

The limit on annual contributions to an IRA remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000. While IRA contribution and catch-up contribution limits will remain unchanged in 2018, increases were made to the income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs) and to contribute to Roth IRAs.

As a general matter, taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, however, the deduction may be reduced or completely phased out, depending on filing status and income. Here are the phase-out ranges for 2018:

• Single taxpayers covered by a workplace retirement plan: $63,000 to $73,000, up from $62,000 to $72,000.
• Married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan: $101,000 to $121,000, up from $99,000 to $119,000.
• An IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered: The deduction is phased out if the couple’s income is between $189,000 and $199,000, up from $186,000 and $196,000.
• A married individual filing a separate return who is covered by a workplace retirement plan: The phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

This reduction or phase out would not apply if neither the taxpayer nor his or her spouse is covered by a retirement plan at work.

The income phase-out ranges for taxpayers making contributions to a Roth IRA are:

• Singles and heads of household: $120,000 to $135,000, up from $118,000 to $133,000.
• Married couples filing jointly: $189,000 to $199,000, up from $186,000 to $196,000.
• Married individual filing a separate return who makes contributions to a Roth IRA: Not subject to an annual cost-of-living adjustment and remains $0 to $10,000.