Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Important Changes This Year

Income

IRAs and Other Retirement Plans

Modified Adjusted Gross Income (AGI) Limit (Advanced certification)

For 2018, the maximum IRA deduction will remain at $5,500 ($6,500 if age 50 or older). If a taxpayer is covered by a retirement plan at work, the deduction for contributions to a traditional IRA is reduced (phased out) if the modified AGI is:

  • More than $101,000 but less than $121,000 for Married Filing Jointly taxpayers or Qualifying Widow(er) if both spouses are covered by a retirement plan
  • More than $63,000 but less than $73,000 for a Single or Head of Household or
  • Less than $10,000 for Married Filing Separately

For 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.

IRA Conversion to Roth IRA (Advanced certification)

A conversion of a traditional IRA to a Roth IRA, and a rollover from any other eligible retirement plan to a Roth IRA, made after December 31, 2017, cannot be recharacterized as having been made to a traditional IRA.