Last week the IRS released Notice 2018-83 which provides cost of living adjustments for retirement plans for 2019.
For the first time since 2013, the limit on annual IRA contributions has increased. In 2019 you can contribute $6,000 to an IRA vs only $5,500 in 2018. The $1,000 catch-up contribution for taxpayers age 50 and older remains at $1,000.
The thresholds for making traditional IRA contributions have also increased:
The thresholds for making traditional IRA contributions have also increased:
- For single taxpayers covered by a workplace retirement plan the phase-out range is $64,000 to $74,000, up $1,000 from 2018 thresholds.
- For married couples filing jointly where the IRA contributor is covered by a workplace retirement plan the phase-out range is $103,000 to $123,000, up $2,000 from 2018 thresholds.
- For single taxpayers and head of household the phase-out range is $122,000 to $137,000, up $2,000.
- For married couples filing jointly the phase-out range is $193,000 to $203,000, up $4,000.
- 401(k), 403(b), and 457 plans increase to $19,000 from $18,500. The $6,000 catch-up contribution for taxpayers age 50 and older remains unchanged.
- SIMPLE plan limitations increase to $13,000 from $12,500
