Articles

IRS Increases Retirement Plan Contribution Limits for 2019 by Jack Winter, CPA/PFS, CFP


Posted on December 19, 2018 by Jack Winter

Taxpayers can save more in 2019 for their future retirement thanks to new contribution limits announced by the IRS.

Workers who participate in their employers’ 401(k) or 403(b) retirement savings plans can contribute a maximum of $19,000 to those plans via salary deferral in 2019, up from $18,500 in 2018. Workers age 50 or older can contribute an additional $6,000 per year.

For qualifying taxpayers with Individual Retirement Accounts (IRAs), the IRS increased for the first time since 2013 the annual contribution limit from $5,500 to $6,000 in 2019, or up to $7,000 when taxpayers are age 50 and older. In addition, the IRS increased the income ranges for determining taxpayers’ eligibility to make deductible contributions to IRAs and/or to contribute to a Roth IRA.

Contributions to IRAs are deductible when the taxpayer or his or her spouse is covered by a retirement savings plan at work. Depending on the taxpayer’s filing status and income, the amount of the deduction may be reduced or phased out completely based on the following:

About the Author: Jack Winter, CPA/PFS, CFP, is an associate director in the Tax Services practice of Berkowitz Pollack Brant, where he provides estate planning, tax structuring and business advisory services to individuals, families and business owners. He can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or via email at info@bpbcpa.com.

 

Information contained in this article is subject to change based on further interpretation of tax laws and subsequent guidance issued by the Internal Revenue Service.

 


Pin It on Pinterest