IRA & Pension Plan Limits*
AGI (Adjusted Gross Income) is your gross income minus adjustments for example, IRA deduction, student loan interest, alimony, etc.
MAGI (Modified Adjusted Gross Income) is your AGI increased by the following exclusions:
- Foreign earned income of U.S citizens or residents living abroad.
- Housing cost of U.S. citizens or residents living abroad.
- Income from sources within Puerto Rico, American Samoa, Guam, or the Northern Marina Islands.
|IRA & Pension Plan Limits|
(under age 50)
(age 50 and over)
|Phaseout for Deducting IRA Contributions
(Qualified Plan Participant)
|Married, Joint||$98,000-$118,000 AGI|
|Single, Head of Household||$61,000-$71,000 AGI|
|Spousal IRA||$184,000-$194,000 AGI|
|Filing Separate||$0-$10,000 AGI|
|Phaseout for Roth Contribution Eligibility|
|Married, Joint||$184,000-$194,000 MAGI|
|Single, Head of Household||$117,000-$132,000 MAGI|
|Filing Separate||$0-$10,000 MAGI|
|Up to 25% of compensation, limit||$53,000|
|Compensation to participate in SEP||$600|
|401(k), 403(b), 457, & SARSEP|
|Elective Deferral Under Age 50||$18,000|
|Elective Deferral Age 50 & Over||$24,000|
|SIMPLE Elective Deferral|
|Under Age 50||$12,500|
|Age 50 & Over||$15,500|
|Limits on additions to defined contribution plans||100% of compensation or $53,000|
|Annual benefit limit on defined benefit plan||$210,000|
|Highly-compensated employee makes||$120,000|
|Annual compensation taken into account for qualified plans||$265,000|
|Retirement Tax Credit
A percentage tax credit is allowed for an IRA, 401(k), 403(b), or 457 plan contribution, in addition to deduction or exclusion, if:
|Married, Joint||Below $61,500 MAGI|
|Head of Household||Below $46,125 MAGI|
|Single; Married, Separate||Below $30,750 MAGI|
*Source: www.IRS.gov. Information provided in this Tax Information Guide is general in nature and is not meant to offer tax advice. You should consult your own tax advisor for more complete information.