IRS raises annual retirement plan contribution cap to $19K for 2019

The IRS announced cost of living adjustments (COLAs) for pension and retirement plan contributions ahead of 2019, as detailed in Notice 2018-83. The maximum contribution for employees in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan increased from $18,500 to $19,000. Maximum annual contributions to a traditional Individual Retirement Accounts (IRA) increased from $5,500 to $6,000 the first such increase since 2013. The income phase-out range for single persons and heads of household contributing to a Roth IRA also increased from $122,000 to $137,000 (up from $120,000 to $135,000). The same range for married couples filing jointly increased from $193,000 to $203,000 (up from $189,000 to $199,000). For a married individual filing a separate return who contributes a Roth IRA isn't subject to a COLA and remains $0 to $10,000. The additional catch-up contribution limit for people ages 50 and over also is not subject to an annual COLA and remains $1,000.