Retirement Account Contribution Limits
The Internal Revenue Service has just announced the various increases that will be allowed for retirement – related accounts to take place in calendar year 2019. A summary of the account limits and catch-up contribution limits is listed below:
The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans is increased from $18,500 to $19,000;
The catch-up contribution limit for employees age 50 and over who participate in 401(k), 403(b), most 457 plans remains at $6,000;
The limit on annual contributions to an IRA is increased from $5,500 to $6,000. The additional “catch-up” contribution limit for individuals age 50 and over who are contributing to an IRA remains at $1,000;
For taxpayers or their spouses who are covered by a retirement plan at work, the income phase-outs for deductible contributions to traditional IRAs generally increased for 2019;
The income phase-out ranges for taxpayers making contributions to Roth IRAs also increased for 2019;
Based upon these changes, employers will need to adjust the limits of contributions that are made by the employer and the employee toward retirement accounts. This information should be communicated to employees as they consider adjustments to their retirement accounts for next year.