2018 IRA Contribution - Parsec Financial

The deadline to make IRA contributions for tax year 2018 is Monday, April 15. The maximum contribution for 2018 is $5,500 per individual ($6,500 if age 50 or over) or 100 percent of earned income, whichever is less.

The maximum contribution was raised for 2019 contributions to $6,000 ($7,000 if age 50 over over).

There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution. The following table gives the phase-out range for the most common circumstances. Keep in mind that if neither you nor your spouse participates in a work-sponsored plan, you can deduct IRA contributions regardless of your income.

Do you qualify to deduct your Traditional IRA contribution?

If your income is less than the beginning of the phase-out range, you qualify. If your income is over the phase-out range, you do not. If your income falls inside the range, you partially qualify.

Modified Adjusted Gross Income Phase-Out Range

Tax Filing StatusFor 2018 ContributionsFor 2019 Contributions
Single, participates in an employer-sponsored retirement plan:$63,000 – $73,000$64,000 – $74,000
Married filing jointly, participates in an employer-sponsored retirement plan:$101,000 – $121,000$103,000 – $123,000
Married filing jointly, your spouse participates in an employer-sponsored retirement plan, but you do not:$189,000 – $199,000$193,000 – $203,000

Do you qualify to contribute to a Roth IRA?

Modified Adjusted Gross Income Phase-Out Range – Roth

Tax Filing StatusFor 2018 ContributionsFor 2019 Contributions
Single:$120,000 - $135,000$122,000 - $137,000
Married, filing jointly:$189,000 - $199,000$193,000 - $203,000

If your filing status differs from those listed above, please contact your advisor and he or she can help you determine whether you qualify.