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Retirement Contribution Limits for 2019

Each year the IRS reviews the maximum contribution limits for retirement accounts for the following year. Sometimes they make changes sometimes they don’t. In November, they announced changes to employee contributions limits for 401(k) and other retirement accounts for 2019. The annual limits have increased on the amount you can save in retirement plans. The last time the limits were increased to an IRA was in 2013!

Highlights of Changes for 2019

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. 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.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) See the chart below for the phase-out ranges for 2019.

There may be other limitations or restrictions, so be sure to speak to your tax adviser.

*You can also make a 50 and older catch-up contribution to a Solo 401(k), however, there are no catch-up contributions allowed on a SEP IRA. 

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Each year the IRS reviews the maximum contribution limits for retirement accounts for the following year. Sometimes they make changes sometimes they don’t. In November, they announced changes to employee contributions limits for 401(k) and other retirement accounts for 2019. The annual limits have increased on the amount you can save in retirement plans. The last time the limits were increased to an IRA was in 2013!

Highlights of Changes for 2019

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. 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.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) See the chart below for the phase-out ranges for 2019.

There may be other limitations or restrictions, so be sure to speak to your tax adviser.

*You can also make a 50 and older catch-up contribution to a Solo 401(k), however, there are no catch-up contributions allowed on a SEP IRA.