Late in 2018, the IRS announced the 2019 cost-of-living adjustments made to contribution limits and income thresholds for retirement plans. This year, cost-of-living index increases were high enough to trigger adjustments to nearly all retirement-related IRS contribution and income amounts for 2019 vs
The only key amounts that remain the same from 2018 are catch-up contribution amounts for those over age 50.
Traditional IRAs (individual retirement account)
The annual contribution cap for individual retirement accounts (IRA) is up $500 from 2018 at $6,000 per eligible individual.
Catch-up contributions for those 50 and over remain capped at an additional $1,000 ($7,000 total
The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads
of household who are covered by a workplace retirement plan and have modified adjusted gross
incomes (AGI) between $64,000 and $74,000 (up $1,000 from 2018).
For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a
workplace retirement plan, the income phase-out increases by $2,000 vs. 2018, to a range of $103,000
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone
who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000,
up from $189,000 and $199,000.
For a married individual filing a separate return who is covered by a workplace retirement plan, the
phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
For married couples filing jointly, the income phase-out range for taxpayers contributing to a Roth IRA is
at an AGI of $193,000 to $203,000, up from $189,000 to $199,000 in 2018.
For singles and heads of household, the Roth IRA income phase-out range is $122,000 to $137,000, up
from $120,000 to $135,000.
For a married individual filing a separate return, the Roth IRA phase-out range is not subject to an
annual cost-of-living adjustment and remains $0 to $10,000.
For more information on these updated contribution limits and income caps, consult your tax advisor.