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Retirement Plan Limits Edge Up for 2019

The IRS just issued Notice 2018-83 containing the 2019 IRA and retirement plan limitations as adjusted for cost-of-living. The IRA contribution limit is increasing to $6,000 for 2019, and most of the income limitations associated with Roth IRA eligibility and Traditional IRA deductions increase. Several retirement plan limitations increase as well. The 401(k) deferral limit (IRC Sec. 402(g)) will be to $19,000 for 2019.

2019 IRA Contribution Limitations

  • Traditional and Roth IRA contributions: $6,000 ($5,500 for 2018)
  • Traditional and Roth IRA catch-up contributions: $1,000 (not subject to COLA adjustments)
  • IRA deductibility phase-out range for single taxpayers that are active participants in retirement plans: $64,000 to $74,000 (was $63,000 to $73,000 for 2018)
  • IRA deductibility phase-out range for married joint filing taxpayers that are active participants in retirement plans: $103,000 to $123,000 (was $101,000 to $121,000 for 2018)
  • IRA deductibility phase-out range for non-active participants who are married to active participants in retirement plans: $193,000 to $203,000 (was $189,000 to $199,000 for 2018)
  • Roth IRA income limit phase-out range for determining contribution eligibility for married joint filers: $193,000 to $203,000 (was $189,000 to $199,000 for 2018)
  • Roth IRA income limit phase-out range for determining contribution eligibility for single filers and heads-of-households: $122,000 to $137,000 (was $120,000 to $135,000 for 2018)

2019 Retirement Plan Limitations

  • Annual additions under IRC Sec. 415(c)(1)(A) for defined contribution plans: $56,000 ($55,000 for 2018)
  • Annual additions under IRC Sec. 415(b)(1)(A) for defined benefit pension plans: $225,000 ($220,000 for 2018)
  • Annual IRC Sec. 402(g) deferral limit for 401(k), 403(b) and 457(b) plans: $19,000 ($18,500 for 2018)
  • Catch-up contributions to 401(k), 403(b) and 457(b) plans: $6,000 (unchanged)
  • Annual deferral limit for SIMPLE IRA and SIMPLE 401(k) plans: $13,000 ($12,500 for 2018)
  • Catch-up contributions for SIMPLE IRA and SIMPLE 401(k) plans: $3,000 (unchanged)
  • IRC Sec. 401(a)(17) compensation cap: $280,000 ($275,000 for 2018)
  • Highly compensated employee definition income threshold: $125,000 ($120,000 for 2018)
  • Top-heavy determination key employee definition income threshold: $180,000 ($175,000 for 2018)

 

All of this means that you have a better opportunity to save for your future!