518-373-4111
2019 limits for retirement plans and other benefits have been announced by the IRS.
The amounts employees can contribute to 401(k)s and IRAs will increase in 2019. In particular:
- The employee contribution limit for 401(k) plans will be $19,000, up from $18,500 in 2018. The catch-up contribution limit for employees aged 50 and over remains unchanged at $6,000.
- The employee contribution limit for IRAs will be $6,000, up from $5,500 in 2018. The catch-up contribution limit for employees aged 50 and over remains unchanged at $1,000.
- The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans will be $13,000, up from $12,500 in 2018. The catch-up contribution limit for employees aged 50 and over remains unchanged at $3,000.
Other limit changes:
- The limitation used in the definition of “highly compensated employee” will increase from $120,000 to $125,000.
- The FICA Wage Base will increase from $128,400 to $132,900
- For low- and moderate-income workers, the Saver’s Credit income limit will increase to:
- $64,000 for married couples filing jointly
- $48,000 for heads of household, and
- $32,000 for singles and married individuals filing separately
Income phase-out ranges have also increased for taxpayers making Roth IRA contributions. For singles and heads of household, the range will be $122,000 to $137,000 (a $2,000 increase at both ends of the range). The range will be $193,000 to $203,000 for married couples filing jointly (a $4,000 increase), while the range will remain the same for married couples filing separate returns ($0 to $10,000).
Read the full notice from the IRS.
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Source for some of the above information: “Retirement Plan Contribution Limits Increased for 2019” by Zywave
