October 2018

IRA Contribution Limits for 2019 – $6,000 and $7,000

The 2019 maximum limits for annual traditional IRA and Roth IRA contributions are being increased to $6,000 (if under age 50) and $7,000 (if age 50 or older). For 2018 the limits are $5,500 and $6,500. Federal tax law provides for a change in the contribution limit once the cost of living adjustment equals or exceeds $500. These contribution limits were changed from $5,000 to $5,500 for 2013. The annual contribution limit for individuals age 50 or older remains at $1,000. Note on page 2 that the compensation limits used to determine the amount an IRA owner who is an active participant is able to claim as a tax deduction for their traditional IRA contribution have also increased.

The 2019 maximum contribution limit for SEP IRAs is increased to $56,000 (or, 25% of compensation, if lesser) up from $55,000. The minimum SEP contribution limit used to determine if an employer must make a contribution for a parttime employee remains the same at $600. The 2019 maximum contribution limits for SIMPLE-IRAs is increased to $13,000 if the individual is under age 50 and $16,000 if age 50 or older. The catch-up amount of $3,000 did not change.

The 2019 maximum elective deferral limit for 401(k) participants is changed to $19,000 for participants under age 50 and $25,000 for participants age 50 and older. The catch-up amount of $6,000 did not change

Contribution limits for a person who is not age 50 or older.
Tax Year         Amount
2008-12          $5,000
2013-18          $5,500
2019               $6,000
Contribution Limits for a person who is age 50 or older.
Tax Year         Amount
2008-12          $6,000
2013-18          $6,500
2019               $7,000