New Limits For Retirement Accounts In 2019

The 401k catch-up limit for those age 50 and up will remain unchanged at $6,000- the same for Traditional IRA catch-up contributions, which will remain at $1,000.  This means older workers (50 or over) maximum contribution limit's will be $25,000 for 401ks and $7,000 for IRAs.  This was the first increase for IRAs since 2013.  

The income phase-outs for Traditional IRAs all increased, generally about $1,000 more than last year.  Those details are as follows:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $64,000 to $74,000, up from $63,000 to $73,000.

  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $103,000 to $123,000, up from $101,000 to $121,000.

  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000, up from $189,000 and $199,000.

  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Remember, if you don't have access to a 401k at work, these wage limits do not apply. 

The income phase-out range for taxpayers making contributions to a Roth IRA is:

  • $122,000 to $137,000 for singles and heads of household, up from $120,000 to $135,000.

  • For married couples filing jointly, the income phase-out range is $193,000 to $203,000, up from $189,000 to $199,000.

  • The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is:

  • $64,000 for married couples filing jointly, up from $63,000

  • $48,000 for heads of household, up from $47,250

  • $32,000 for singles and married individuals filing separately, up from $31,500.

(Source; IRS.gov)

--------------------------