The Internal Revenue Revenue has announced cost-of-living changes to limitations on benefits and contributions for retirement plans in 2019. Notice 2018-83, 2018-47 I.R.B. ___ (11/19/2018).
Among the most common limitations are the following changes:
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.
- The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000.
- 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.