11/20/2018

IRS announces new contribution levels for retirement accounts

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This month the IRS announced tax year 2019 annual cost-of-living adjustments for more than 60 items including tax rate schedules, retirement savings contribution limits and increases to the standard deduction.

The limit on annual contributions to an IRA had its first increase since 2013, going from $5,500 to $6,000 per qualified individual. Catch-up contributions for those age 50 and over remained the same at $1,000.

The maximum elective deferral to 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000, again, with the catch-up contribution remaining at $6,000.

You can review all the inflation related adjustments to retirement plans in Notice 2018-83 from the Internal Revenue Service.

For additional information on all the cost-of-living adjustments, here is their news release: IRS provides tax inflation adjustments for tax year 2019.

In addition, our new release of 2019 tax rates, schedules, and contribution limits is available here: 2019 Tax Facts.