- Contributions to IRAs and Roth IRAs are aggregated. This means that you cannot contribute $5,500 to each type (i.e., traditional and Roth IRA); however, you can contribute some to each up to the $5,500 combined limit. If you are aged 50 or older in 2018, your IRA contribution increases to $6,500.
- TRADITIONAL IRA CONTRIBUTIONS: While the IRS rules allow for contributions to both Solo 401k plan and IRAs, since you are participating in a solo 401k plan, your traditional IRA contributions may not be deductible. See the chart listed on the following IRS link for these limits:
If you’re covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.
2018 IRA Contribution and Deduction Limits – Effect of Modified AGI on Deductible Contributions If You ARE Covered by a Retirement Plan at Work
|
If Your Filing Status Is… |
And Your Modified AGI Is… | Then You Can Take… |
|---|---|---|
| single or head of household |
$63,000 or less |
a full deduction up to the amount of your contribution limit. |
|
more than $63,000 but less than $73,000 |
a partial deduction. |
|
|
$73,000 or more |
no deduction. |
|
| married filing jointly or qualifying widow(er) |
$101,000 or less |
a full deduction up to the amount of your contribution limit. |
|
more than $101,000 but less than $121,000 |
a partial deduction. |
|
|
$121,000 or more |
no deduction. |
|
| married filing separately |
less than $10,000 |
a partial deduction. |
|
$10,000 or more |
no deduction. |
|
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “single” filing status. | ||
- ROTH IRA CONTRIBUTIONS: While you can also contribute to Roth IRAs and solo 401k plans, not everybody qualifies if their modified AGI is over a certain limit. For these limits, please see the following chart.
This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose.
Amount of Roth IRA Contributions That You Can Make for 2018
| If your filing status is… | And your modified AGI is… | Then you can contribute… |
|---|---|---|
| married filing jointly or qualifying widow(er) |
< $189,000 |
up to the limit |
|
> $189,000 but < $199,000 |
a reduced amount |
|
|
> $199,000 |
zero |
|
| married filing separately and you lived with your spouse at any time during the year |
< $10,000 |
a reduced amount |
|
> $10,000 |
zero |
|
| single, head of household, or married filing separately and you did not live with your spouse at any time during the year |
< $120,000 |
up to the limit |
|
> $120,000 but < $135,000 |
a reduced amount |
|
|
> $135,000 |
zero |
