Increased Contributions Limits

The IRS announced cost of living adjustments in the contribution limits to popular retirement savings accounts for 2019.  The limit allowed to be contributed by employees to a 401(k), 403(b), Thrift Savings Plans, and 457 plans for 2019 increased from $18,500 to $19,000.  Participants over the age of 50 can contribute an additional $6,000 (unchanged from 2018).

Contribution limits to IRAs and Roth IRAs increased from $5,500 to $6,000, the first increase since 2013.  Individuals over the age of 50 can contribute an additional $1,000.

The income ranges in determining who is eligible to contribute to IRAs and Roth IRAs and whether contributions are deductible also shifted up.  Single taxpayers covered by an employer retirement plan saw the phaseout range increase to between $64,000 and $74,000 for deductible IRA contributions.  This range is between $103,000 and $123,000 for married couples filing joint returns.  For contributors who are not covered by an employer plan but are married to someone who is the income range is now between $193,000 and $203,000.  Roth eligibility phaseout ranges increased to between $122,000 and $137,000 for single filers and $193,000 and $203,000 for married couples filing jointly.

Full details on all changes can be found on the IRS website:  https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000


 

November 12, 2018