See what the new 2019 IRS rules mean for your retirement savings
Each fall, the IRS unveils any new cost-of-living adjustments to retirement plans for the following year. For 2019, the IRS increased the amount you can squirrel away in your 401(k), 403(b) and most government plans — from $18,500 in 2018 to $19,000.
IRA investors have been stuck with the same $5,500 limit since 2013— plus a $1,000 catch-up contribution for the 50 and older crowd. But for 2019, the IRA contribution limit increased to $6,000, plus a $1,000 catch-up contribution.
Other government caps that affect retirement savers also will go up in 2019, and these are worth paying attention to. For instance, if you’re lucky enough to be covered by a traditional pension plan at work, the maximum amount you can collect as an annual benefit has increased from $220,000 to $225,000.
And if you’re fortunate enough to have a generous employer padding your 401(k)-type plan, the maximum that can be contributed annually rose to $56,000 a year from $55,000. Self-employed entrepreneurs take heed: These limits apply to small-business retirement plans, too.
The chart below shows the IRS changes for 2019, including income limits for those who contribute to both a traditional IRA and a workplace retirement plan (or those whose spouses have access to a workplace plan), as well as the income limits for those who contribute to Roth IRAs.
Middle-and low-income savers may qualify for a saver’s credit, worth up to $2,000 ($4,000 for those married filing jointly).
|Maximum workplace retirement plan contribution amounts||2018||2019|
|401(k), 403(b), most 457 plans and federal Thrift Savings Plan||$18,500||$19,000|
|Catch-up contributions in these plans for people 50 and older||$6,000||$6,000|
|IRA contribution limits||2018||2019|
|Traditional and Roth IRAs for people younger than 50||$5,500||$6,000|
|Catch-up IRA contributions for people 50 and older||$1,000||$1,000|
|Defined benefit pension plan annual benefit limits||$220,000||$225,000|
|Annual employer limit for 401(k)-type plans, SEP IRAs and solo 401(k)s||$55,000||$56,000|
|Annual contribution limit for SIMPLE plans||$12,500||$13,000|
|Catch-up contribution limit for people age 50 and up||$3,000||$3,000|
|Adjusted gross income phaseout range of IRA deductibility||2018||2019|
|Single and contributing to a workplace plan||$63,000
|Married filing jointly when the spouse making the contribution has a workplace plan||$101,000
|Married filing jointly when the contributor isn’t covered by a workplace plan but the spouse is covered||$189,000
|Married and covered by a workplace place plan but filing separately||$0 to $10,000||$0 to $10,000|
|Roth IRA income eligibility phaseout||2018||2019|
|Single and head of household filers||$120,000
|Married filing jointly or qualified widow/widowers||$189,000
|Married filing separately||$0
|Retirement savings contribution credit, or saver’s credit, income limits||2018||2019|
|Married filing jointly couples||$63,000||$64,000|
|Heads of household||$47,250||$48,000|