IRA contribution limits are increasing in 2019. For the first time in six years, the IRS is going to push up both the 401k contribution limit and the IRA contribution limit by $500.
The IRS adjusts IRA contribution limits and also adjusts income phase-out ranges once a year, and that’s based on cost of living adjustments. Inflation-adjusted figures mean that annual IRA contribution limits will finally increase for 2019 from the current $5,500 limit they’ve been held at since 2013.
All 401k contribution limits will go up by $500 from $18,500 in 2018, to $19,000 in 2019. If you are 50 or older in age, catch-up contribution limits will stay the same at $6,000 for both 2018 and 2019. Note that employer match contributions aren’t included in these limits and that 401k and 403b plan share the same limit.
SIMPLE 401k and SIMPLE IRA Contribution Limit
SIMPLE 401k and SIMPLE IRA plans have a lower limit than 401k plans. It will also go up by $500 from $12,500 in 2018 to $13,000 in 2019. If you are age 50 or over, the catch-up contribution limit will stay the same at $3,000 in both 2018 and 2019. Employer contributions aren’t included in these limits.
Roth IRA Income Limits
The income limit for contributing the maximum to a Roth IRA will go up by $2,000 for single individuals from $120,000 in 2018 to $122,000 in 2019. Comparatively, contributions increase by $4,000 for a married filing couple, from $189,000 in 2018 to $193,000 in 2019.
Note that single individuals cannot contribute anything directly to a Roth IRA if their gross earned income goes over $135,000 for 2018 and $137,000 in 2019. For married joint filers, gross income cannot exceed $199,000 in 2018 and $203,000 for 2019.