Projected IRS Contribution LimitsSubmitted by Karstens Investments on October 26th, 2018
By Mark E. Johnson, AIFA
The IRS announcement is pending on cost of living increases on dollar limits for retirement savings plan accounts. The following are the projected limits for employees participating in a 401(k), 403(b), 457 or a federal government Thrift Savings plan. The annual elective contribution maximum will probably increase by $500 to $19,000 for 2019. The catch-up contribution limit for individuals that attain 50 years of age or older in 2019 will remain unchanged at $6,000. The annual additions limitation for all employer and employee contributions made on an employee’s behalf is projected to increase to $56,000 in 2019. The maximum compensation amount allowed to be considered for benefit purposes will probably increase to $280,000. SIMPLE plan contribution limits are projected to increase by $500 to $13,000 and the catch-up contribution limit remains unchanged at $3,000.
IRA contribution limits are projected to increase to $6,000 and the IRA catch-up contribution limit will remain at $1,000. The income limitations applicable to phase-out provisions for IRAs and Roth IRAs will increase slightly in 2019.