Qualified Retirement Plans – Inflation Adjustments

The limit on elective deferral contributions to 401(k) plans, 403(b) plans, most 457 plans will rise from $18,500 in 2018 to $19,000 in 2019, per the IRS. Nevertheless, the contribution limit for those 50 and older remains $6,000. Many other adjusted inflation amounts associated to pensions increased from 2018 to 2019.

The maximum deductible IRA contribution for 2019 will increase $500 to $6,000. The aptitude of taxpayers who are covered by workplace retirement plans to make a deductible IRA contribution is phased out for singles and heads of household who have adjusted gross incomes between $64,000 and $74,000.

Filing jointly, where the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phaseout range is $103,000 to $123,000 for 2019. When an IRA contributor is not covered by a workplace retirement plan but is married to someone who is, the deduction is phased out if the couple’s income ranges from $193,000 to $203,000.

Taxpayers making contributions to Roth IRAs, the phaseout range for determining the maximum contribution is $193,000 to $203,000 for married couples filing jointly and $122,000 to $137,000 for singles and heads of household. An increase from 2018.