Based on cost of living adjustments, for 2019 the IRS has announced increase in contribution limits for those who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan from $18,500 to $19,000. The catch-up contribution limit for employees aged 50 and over who participate in such plans remains unchanged at $6,000.
The limit on annual contributions to an IRA has been increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 remains $1,000.
The phase-out ranges for 2019, which applies when the taxpayer or, if married, either of the spouse is covered by a retirement plan at work will be as follows:
- For single taxpayers covered by a workplace retirement plan, the phase-out range has been raised to $64,000 to $74,000, up from $63,000 to $73,000.
- For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range has been raised to $103,000 to $123,000, up from $101,000 to $121,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out has been raised to if the couple’s income between $193,000 and $203,000, up from $189,000 and $199,000.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In respect of Roth IRA contributions, the income phase-out range has been increased to $122,000 to $137,000 for singles and heads of household, up from $120,000 to $135,000. For married couples filing jointly (MFJ), the income phase-out range is $193,000 to $203,000, up from $189,000 to $199,000. The phase-out range for a married individual filing a separate return (MFS) who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
Full details of IRS Notice 2018-83 announcing 2019 Limitations are provided in the link below: