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Ask A CPA - 2018 Tax Law Changes

2018 - Retirement Plan Limits

For 2018, the contribution limit for traditional IRAs and Roth IRAs is unchanged at $5,500, or $6,500 for those age 50 or older. The deduction limit for 2018 contributions to a traditional IRA is phased out for active plan participants with modified AGI (MAGI) between $63,000 and $73,000 for a single person or head of household, or between $101,000 and $121,000 for married persons filing jointly and qualifying widows/widowers. The phaseout range is MAGI between $189,000 and $199,000 for a spouse who is not an active plan participant and who files jointly with a spouse who is an active plan participant. The 2018 Roth IRA contribution limit is phased out for a single person or head of household with MAGI between $120,000 and $135,000, and for married persons filing jointly and qualifying widows/widowers with MAGI between $189,000 and $199,000. If you converted your traditional IRA to a Roth IRA in 2018, you cannot undo it; the conversion is permanent.

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