The IRS announced the contribution and income limits for the 2018 calendar year. For 2018, these limits are:
Contribution Limits Unchanged
The total amount you can contribute to either a Roth IRA or a Traditional IRA remains unchanged at $5,500. People 50 and over can contribute an additional $1,000 for a total of $6,500. Unfortunately, these limits (as you can see below) hasn’t been changed for several years now. I wish we get to see these go up a bit next year.
Income Limits Bumped Up
You can only contribute to a Roth IRA, however, if your income is below a certain threshold. For single filers in 2018, that income threshold starts at $120,000 and ends at $135,000. For married filers in 2018, that income threshold starts at $189,000 and ends at $199,000.
The comparative figures for 2018 to 2015 are:
|Roth IRA Contribution Limit||$5,500||$5,500||$5,500||$5,500|
|Roth IRA Contribution Limit (50 or over)||$6,500||$6,500||$6,500||$6,500|
|Roth IRA Income Limits (for single filers)||Phase-out starts at $120,000; ineligible at $135,000||Phase-out starts at $118,000; ineligible at $133,000||Phase-out starts at $117,000; ineligible at $132,000||Phase-out starts at $116,000; ineligible at $131,000|
|Roth IRA Income Limits (for married filers)||Phase-out starts at $189,000; ineligible at $199,000||Phase-out starts at $186,000; ineligible at $196,000||Phase-out starts at $184,000; ineligible at $194,000||Phase-out starts at $183,000; ineligible at $193,000|