Alert: retirement account pay-in increases coming in 2019

Recent News, Tax,

The IRS has announced increases to many key contribution limits for IRAs and retirement plans starting in 2019.

The 2019 payin limits for traditional IRAs and Roth IRAs jumps to $6,000.  Individuals who are age 50 and older next year can contribute an additional $1,000.

The maximum 401(k) contribution rises to $19,000, and people born before 1970 can contribute an extra $6,000. These limits apply to 403(b) and 457 plans as well.

The payin limitation for defined contribution plans increases to $56,000.

Retirement plan contributions will be based on up to $280,000 of salary, and the income ceilings on Roth IRA payins is going up as well: contributions phase out at adjusted gross income (AGI) of $193,000 to $203,000 for couples and $122,000 to $137,000 for individuals.  Also, deduction phaseouts for traditional IRAs start at higher levels in 2019, from AGIs of $103,000 to $123,000 for couples and $64,000 to $74,000 for singles.

[Happy Halloween!]