News and Commentary

There’s Still Time for Savers to Contribute to Retirement Plans in 2018 by Sean Deviney, CFP

As we near the end of 2018, the IRS urges taxpayers to remember that they still have time to max out their retirement plan contribution for the 2018 tax year and potentially reduce their taxable income.

Employer-Sponsored Retirement Plans

Workers who are eligible to participate in employer-sponsored 401(k), 403(b), 457 plans can contribute up to $18,500 in pre-tax dollars to these plans in 2018 (or $24,500 for workers age 50 and older). Business owners who elect to contribute to a 401(k) in 2018 must do so before the end of the year, however, they will have until the April 2019 tax filing deadline to make the deferral contribution.

Individual Retirement Accounts (IRAs)

Eligible taxpayers may contribute up to $5,500 to a traditional IRA or Roth IRA in 2018, plus an addition $1,000 for individuals age 50 and older. The deadline for making 2018 IRA contributions is April 15, 2019. This extension of time allows individuals to assess their tax liabilities for the current year and determine whether it would be more beneficial to take a tax break this year by contributing to a traditional IRA or paying taxes now on a contributions to a Roth IRA, for which future withdrawals in retirement will be tax free. In some instances, taxpayers will not have any choice in this decision, based upon their filing status, income and whether or not they or their spouse is covered by a retirement plan at work. For example, the tax deduction an individual can claim on a contribution to a traditional IRA in 2018 is reduced based on the following phase out ranges:

The income phase-out range for taxpayers making contributions to Roth IRAs is $120,000 to $135,000 for single filers, and $189,000 to $199,000 for married couples filing jointly. Contribution limits for participants in SIMPLE IRA plans is $12,500.

About the Author: Sean Deviney is a CFP®* professional and retirement plan advisor with Provenance Wealth Advisors (PWA), an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors and Accountants, and a registered representative with Raymond James Financial Services. For more information, call (954) 712-8888 or email

Provenance Wealth Advisors, 515 E. Las Olas Blvd., Ft. Lauderdale, FL 33301 (954) 712-8888.

Sean Deviney is a registered representative of and offers securities through Raymond James Financial Services, Inc., Member FINRA/SIPC. Raymond James is not affiliated with and does not endorse the opinions or services of Berkowitz Pollack Brant Advisors and Accountants.

PWA is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc., and Provenance Wealth Advisors.


This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of PWA and not necessarily those of Raymond James. You should discuss any tax or legal matters with the appropriate professional. The information contained in this report has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.


401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10% federal tax penalty. Investments mentioned may not be suitable for all investors. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.


* Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.