IRS Releases 2019 Retirement Plan Contribution Limits

On November 1, the IRS announced cost of living adjustments for various retirement accounts, including IRAs and 401(k) plans. The changes are as follows:

  • For the first time since 2013, the IRA contribution limit will increase from $5,500 to $6,000 in 2019. Catch up contributions if you are age 50 or older remain unchanged at $1,000 for IRAs.

  • For 401k plans (and 403(b) plans), the retirement plan contribution amount will increase from $18,500 to $19,000. Catch up contributions for age 50 and older participants remain unchanged at $6,000.

  • The income phase-out for taxpayers making contributions to Roth IRAs will increase from $122,000 to $137,000 for singles and heads of household and for married couples filing jointly, the income phase-out is from $193,000 to $203,000.

  • The limitation on the annual benefit for defined contribution plans (i.e. 401(k) plans and profit sharing plans) will increase from $55,000 to $56,000.

  • The annual compensation limit will increase from $275,000 to $280,000. For more information, please contact your Pivot tax advisor at 904.280.2053.

Content originally posted in IRS, written by Gary A. Phillps.