Here are the 2018 contribution limits for 401(k)s, Roth IRAs, IRAs, and HSAs, as well as Saver's Credit income limits. (Photo: Shutterstock)

The new tax law included changes for 2018 that will affect how much you can save for retirement.

However, unlike much of the rest of the bill, these changes are positive, raising the contribution level limits and giving workers a leg up on their savings plans.

Here are five changes The Motley Fool has highlighted that workers should act on this year.

The more, and the earlier, employees can set aside now, the lower their worry level will be come retirement:

401(k) contribution limits: $18,500


  • In 2018 the maximum contribution limit for 401(k)s rises to $18,500 (up from 2017′s $18,000)

  • Catch-up contributions for ages 50 and over: $6,000 (no change from 2017)

Roth IRA income limits: $135,000/$199,000


Those who contribute to Roth IRAs aren’t allowed to do so if their income exceeds a certain level. Last year the income limit for contributing was $133,000 for single or head of household.

And while the amount you can contribute to the account hasn’t gone up ($5,500 for those under 50, $6,500 for those 50 and older), the income limits that keep you from doing so have:

  • In 2018, the ability to contribute to a Roth will be phased out over the annual income range of $120,000–$135,000 for 2018. Based on where your income falls within that range, you’ll only be able to make a partial contribution.

  • Married taxpayers filing jointly — $189,000–$199,000 in income.

  • Married taxpayers filing separately — still $0–$10,000.

IRA deduction limits: $73,000/$121,000/$199,000


  • Single taxpayers with a workplace retirement plan get phased out of IRAs if they make $63,000–$73,000 (up from $62,000–$72,000).

  • Married couples who file jointly, where the IRA contributor is covered by a workplace plan, get phased out at $101,000–$121,000 (up from $99,000–$119,000).

  • Couples in which the individual contributor is not covered by a plan but their spouse is will see the income phaseout range rise to $189,000–$199,000 (up from $186,000–$196,000).

Saver’s Credit income limits: $63,000/$47,250/$31,500


The Saver’s Credit, also known as the Retirement Savings Contributions Credit, may be claimed for making retirement savings contributions if you’re below certain income limits for the year.

This year those income limits have risen:

  • $63,000 for married-filing-jointly taxpayers (up from $61,500)

  • $47,250 for heads of household (up from $46,125)

  • $31,500 for single and married-filing-separately taxpayers (up from $30,750) 

HSA contribution limits: $3,450/$6,900


Although people still don’t think of health savings accounts as potential retirement savings accounts, their triple-tax advantage makes them even better than 401(k)s and IRAs.

HSA contributions are tax deductible, there’s no tax on capital gains or dividends for money in the account and it’s tax-free on withdrawal if spent on qualified medical expenses.

And once you hit 65, that medical expense thing goes away and you can spend it on anything you want—although you’ll have to pay taxes on the withdrawals.

Here are the new HSA contribution limits for 2018:

  • $3,450 for self-only HSAs (up from $3,400)

  • $6,900 for family-coverage HSAs (up from $6,750)

  • Catch-up contributions for ages 55 and over: No increase