New IRA Contribution Limits for 2019

On November 1, 2018, the IRS announced the 401(k) and IRA contribution limits for 2019.

 The IRA limit will increase from $5,500 in 2018 to $6,000 in 2019. Individuals over age 50 may make a catch-up contribution of $1,000, for a total transfer of $7,000 in 2019. This is the first increase since 2013.

The Roth IRA phaseout limits also increase in 2019. For single individual, the phaseout for next year will be $122,000 to $137,000.  For married couples, the Roth IRA phaseout is $193,000 to $203,000.

 The contribution limit for employees who participate in 401(k), 403(b), most IRC Section 457 plans and the Thrift Savings Plan is increased from $18,500 to $19,000. The catch-up contribution limit for employees aged 50 and over who participate in these plans will stay at $6,000.