Each year the IRS adjusts various aspects of the tax code to account for inflation. Whether you have an IRA, a 401k, a small business retirement plan or administer a 401k for your company, rule changes for 2019 may be an opportunity for an impactful adjustment. In January, consider increasing your retirement plan contributions in line with these changes, especially if you got a year-end salary increase. Future you will be happy you did!
For Individuals
| 2018 | 2019 | |
|---|---|---|
| The amount you can contribute to your 401k/403b | $18,500 | $19,000 |
| Amount you can “catch-up” on 401k/403b, if you are 50+ | $6,000 | $6,000 |
| Roth and Traditional IRA contribution limits | $5,500 | $6,000 |
| Income level where Roth IRA eligibility starts to phase out – Married | $189,000 | $193,000 |
| Income level where Roth IRA eligibility starts to phase out – Single | $120,000 | $122,000 |
| The portion of your salary that will be subject to Social Security taxes | $128,400 | $132,9000 |
If you’d like to make contribution changes to your 401k, please contact your plan administrator
For Businesses
| 2018 | 2019 | |
|---|---|---|
| Maximum that can be contributed to SEPs and Solo 401ks | $55,000 | $56,000 |
| Amount you can “catch-up” on SEPs and Solo 401ks, if you are 50+ | $6,000 | $6,000 |
| Annual Compensation limit used for calculating plan deferral limits | $275,000 | $280,000 |
| Annual Compensation to be considered a “Highly Compensated Employee” | $120,000 | $125,000 |
| Maximum that can be contributed to a SIMPLE retirement account | $12,500 | $13,000 |
| The amount you can “catch-up” to a SIMPLE plan, if you are 50+ | $3,000 | $3,000 |