2018 IRA Contribution Limit
For 2018, the IRA Contribution Limit is $5,500 (Annual contribution limit) and +$1,000 (Catch-up contribution limit, age 50 and over).
Effective 2018-01-01Source: IR-2017-177 (IRS)Verified 2026-08-29
Compared with 2017
Every figure on this page is unchanged from 2017.
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Annual contribution limit | $5,500 | $5,500 | +$0 (+0.0%) |
| Catch-up contribution limit, age 50 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who contribute to a traditional IRA or Roth IRA
What changed this year, and why
The IRA contribution limits for 2018 remained unchanged from 2017.
Common questions
- What is the maximum contribution to an IRA for 2018?
- The annual contribution limit is $5,500 for 2018, the same as in 2017.
- Is there an additional limit for older taxpayers?
- Yes. Taxpayers who are age 50 or older can contribute an additional $1,000 as a catch-up contribution, on top of the regular limit. This amount also remained unchanged from 2017.
The extra amount once you reach 50
If you are age 50 or older by the end of 2018, you can contribute an extra $1,000 on top of the regular limit. This catch-up amount raises your total contribution limit from $5,500 to $6,500. The catch-up provision applies to both traditional and Roth IRAs. You qualify for the full $1,000 catch-up if you reach age 50 at any point during the year - you don't have to be 50 on the day you make the contribution. However, your actual contribution is still subject to other limits, such as the compensation cap and any applicable income phaseouts.
For 2018, the most that can be contributed to your tradi- tional IRA generally is the smaller of the following amounts. • $5,500 ($6,500 if you are age 50 or older). • Your taxable compensation (defined earlier) for the year.
Publication 590-A (2018), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
You cannot contribute more than you earned
For 2018, your contribution to a traditional IRA cannot exceed your taxable compensation for the year. This means if you earned less than $5,500, your contribution limit is reduced to the amount you actually earned. For example, a part-time worker with very low earnings cannot contribute the full $5,500 if their compensation falls below that amount. This rule applies to the total of all contributions across all your traditional IRAs. Compensation includes wages, salaries, tips, professional fees, bonuses, commissions, and self-employment income. The purpose of this cap is to ensure that IRA contributions are tied to actual earnings from work, preventing people with little or no earned income from sheltering large amounts in tax-advantaged accounts. Even if you are age 50 or older and entitled to a higher limit, the compensation cap still applies.
Generally, compensation is what you earn from working.
Publication 590-A (2018), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
Why a workplace plan can take the deduction away
For 2018, if you are covered by an employer retirement plan, your ability to deduct your traditional IRA contribution depends on your modified adjusted gross income and filing status. The deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. These income thresholds vary depending on your filing status. If you are covered by a plan at work, you may find that your deduction is partially or completely reduced. If your spouse is covered by a plan but you are not, different income thresholds apply to determine whether you can deduct your contribution. The phaseout does not affect your ability to contribute to a traditional IRA - it only affects whether that contribution is deductible.
The amount of any reduction in the limit on your IRA de- duction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan.
Publication 590-A (2018), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How late you can still contribute for a year
For 2018, you can contribute to a traditional IRA at any time during the year or by the due date of your tax return for that year (not including extensions). This means that even though the calendar year ends on December 31, 2018, you still have until April 15, 2019 to make your contribution for 2018. This extended deadline gives taxpayers additional time to finalize their financial situation and take advantage of the tax benefits of IRA contributions. However, contributions made after December 31 must be designated for the correct year when made, and you cannot get an extension beyond the tax filing deadline. If you miss this deadline, you cannot make a contribution for that year and will lose the opportunity to use that year's contribution limit.
You can make contributions for 2018 by the due date (not including extensions) for filing your 2018 tax return.
Publication 590-A (2018), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
The 6% tax on contributing too much
For 2018, if you contribute more than the annual limit to your traditional IRA, the excess amount is subject to a 6% excise tax each year it remains in your account. This tax is calculated on the excess contribution balance at the end of your tax year, not just the original excess amount. The tax continues annually until you either withdraw the excess contribution and any earnings it generated, or until the excess is absorbed by unused contribution room in a future year. You can avoid this tax entirely by withdrawing the excess contribution and any income it earned before the due date of your tax return (including extensions). If you fail to do so, you must pay the 6% tax each subsequent year until the excess is corrected. The additional tax is reported on Form 5329 and is calculated separately from your regular income tax liability.
In general, if the excess contributions for a year aren’t withdrawn by the date your return for the year is due (in- cluding extensions), you are subject to a 6% tax. You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year.
Publication 590-A (2018), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
IR-2017-177 (IRS)
- Annual contribution limit
The deductible amount under Section 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,500.
- Catch-up contribution limit, age 50 and over
The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.