See what the new 2019 IRS rules mean for your retirement savings
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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
to $73,000 |
$64,000
to $74,000 |
| Married filing jointly when the spouse making the contribution has a workplace plan | $101,000
to $121,000
|
$103,000
to $123,000 |
| Married filing jointly when the contributor isn’t covered by a workplace plan but the spouse is covered | $189,000
to $199,00 |
$193,000
to $203,000 |
| 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
to $135,000 |
$122,000
to $137,000 |
| Married filing jointly or qualified widow/widowers | $189,000
to $199,000 |
$193,000
to $203,000 |
| Married filing separately | $0
to $10,000 |
$0
to $10,000 |
| 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 |
| Single taxpayers | $31,500 | $32,000 |