Effective January 1st, 2019, The Treasure Department released inflation-adjusted figures for the retirement account savings for 2019. In case you didn’t catch the news, here is a recap of what was announced: For procedural guidance, please see IRS Notice 2018-83.
Individual Retirement Accounts
Limit is being bumped from $5,500 to $6,000.
Workplace retirement plans have increased from $18,500 to $19,000
Contribution has increased from $55,000 to $56,000
Retirement accounts contribution limit increased from $12,500 to $13,000
Defined Benefit Plan
Annual benefit has increased from $220,000 to $225,000.
Deductible IRA Phase-Out Range
Singles and heads of households increases to $64,000 to $74,000
Married couples increase to $103,000 to $123,000
Married individual not covered by workplace retirement plan, increases to $189,000 to $199,000
Roth IRA Phase-Out Range
Singles and heads of households increases to $122,000 to $137,000
Married couples increase to $189,000 to $199,000
Singles increases to $32,000
Married couple increases to $64,000
Heads of household increases to $48,000
Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional.