This year the 401(k) contribution limit was raised from $18,000 to $18,500. This increase also applies to 403(b)s, the majority of 457 plans and the federal government Thrift Savings Plan for 2018.
The feds didn’t change the limit for catch-up contributions for employees ages 50 and over, however. That amount still is $6,000.
Contribution limits for traditional and Roth IRA plans also stayed flat at $5,500, with catch-up contributions of $1,000 for those 50 and over.
For those covered by a workplace retirement plan such as a 401(k), the income ranges for IRA deduction phaseouts also changed for 2018.
For single taxpayers with a workplace retirement plan, the deduction is phased out for those making $63,000 to $73,000, up from $62,000 to $72,000.
For married couples filing jointly, where the IRA contributor is covered by a workplace plan, the income phaseout range rises to $101,000 to $121,000, from a range of $99,000 to $119,000.
And for couples where the individual contributor is not covered by a plan, but their spouse is, the income phaseout range climbs to $189,000 to $199,000 from $186,000 to $196,000.
For those covered by a workplace retirement plan such as a 401(k), the income ranges for IRA deduction phaseouts also changed this year:
For single taxpayers, the phaseout range is now $120,000 to $135,000, up from $118,000 to $133,000.
And for married couples filing jointly, the income phase-out range is $189,000 to $199,000, up from $186,000 to $196,000.
Each year, the IRS assesses contribution limits for pension plans and retirement saving accounts to accommodate for cost of living adjustments.