Each fall, the IRS unveils any new cost-of-living adjustments to retirement plans for the following year. For 2019, the IRS increased the amount you can squirrel away in your 401(k), 403(b) and most government plans — from $18,500 in 2018 to $19,000.
IRA investors have been stuck with the same $5,500 limit since 2013— plus a $1,000 catch-up contribution for the 50 and older crowd. But for 2019, the IRA contribution limit increased to $6,000, plus a $1,000 catch-up contribution.
Other government caps that affect retirement savers also will go up in 2019, and these are worth paying attention to. For instance, if you’re lucky enough to be covered by a traditional pension plan at work, the maximum amount you can collect as an annual benefit has increased from $220,000 to $225,000.
And if you’re fortunate enough to have a generous employer padding your 401(k)-type plan, the maximum that can be contributed annually rose to $56,000 a year from $55,000. Self-employed entrepreneurs take heed: These limits apply to small-business retirement plans, too.
The chart below shows the IRS changes for 2019, including income limits for those who contribute to both a traditional IRA and a workplace retirement plan (or those whose spouses have access to a workplace plan), as well as the income limits for those who contribute to Roth IRAs.
Middle-and low-income savers may qualify for a saver’s credit, worth up to $2,000 ($4,000 for those married filing jointly).
