Retirement Plan Changes for 2019

retirement plan

Retirement Plan Changes for 2019

Effective Jan 1st, 2019 the following are in effect.  Excluding Individual Retirement Accounts (IRA’s) these numbers are generally not tested on licensing exams.  Since a person can contribute up to April 15th, 2019 for their 2018 IRA our courses will not be updated until the spring. (Retirement Plan)

  • The limit on contributing to an IRA has increased from $5,500 to $6,000 (the last increase was 2013)
  • The additional catch-up contribution for individuals aged 50 or over remains the same at $1,000 (it is not indexed to inflation)
    • Therefore, the maximum IRA contribution for a person age 50 or over has increased from $6,500 or $7,000
  • The limit on contributing to a 401(k), 403(b), and 457 plans has increased from $18,500 to $19,000
  • The income phase-out range for persons who are permitted to make contributions to a Roth IRA is:
    • $122,000 to $137,000 for single filers (up from $120,000 to $135,000)
    • $193,000 to $203,000 for married persons filing jointly (up from $189,000 to $199,000)
  • The limit on contributing to a Simplified Employee Pension (SEP) has increased from $55,000 to $56,000

Testimonials