Starting in 2019 you can save even more in your retirement accounts. The IRS has published the new contribution limits and income phase-outs in IRS Notice 2018-83 (here’s a link to the Notice: https://www.irs.gov/pub/irs-drop/n-18-83.pdf)
Among the updates are:
- Annual contribution limits on 401(k), 403(b), 457, and the federal government’s Thrift Savings Plan have gone up from $18,500 to $19,000.
- IRA and Roth IRA contribution limits are rising from $5500 to $6000.
- The IRA Deductibility phaseout* for those covered by a workplace plan for single filers is rising from the $63,000-$73,000 range to $64,000-$74,000. The phaseout for married filing jointly is going from $101,000-$121,000 to $103,000 to $123,000.
- Roth eligibility is also rising. Single filers phaseout is going from $120,000-$135,000 to $122,000-$137,000. For married filers it’s going from $189,000-$199,000 to $193000-$203,000.
- “Catch-up” contributions for those filers over 50 years of age are still $6000 for qualified retirement plans and $1000 for IRAs
*Phaseout means that with income up to the phaseout limit you can contribute or that the contribution is deductible. If your income is in the phaseout range, your eligibility is decreased. Income over the phaseout means you can’t contribute or don’t get a deduction.
There are numerous other changes in the notice. If you have questions about these increases in contribution and deductibility ranges, feel free to email me at [email protected].