IRS Announces 2019 Retirement Account Contribution Limits
By Jordan Sheppherd

A few days ago, the IRS issued updated contribution limits to retirement accounts for 2019. There isn’t a huge change compared to 2018, but let’s go through the announcement so you’re prepared for 2019. With these new limits, Solo 401(k)s remain the best option for those wanting to aggressively save for retirement and reduce taxes.
IRA Contribution Limits for 2019
The Short & Sweet
Contribution limits went up $500 while the catch-up contribution for those over 50 years old, of $1,000 is fixed by law, and so remains the same. These limits apply to Traditional and Roth IRAs.
Examples
Joe is 27 years old and wants to contribute to his Roth IRA. His maximum contribution for 2019 will be $6,000 because he is under 50 years old.
Joe’s father, who is 61 years old, wants to contribute to his Traditional IRA. His maximum contribution for 2019 will be $7,000. Because he is over 50 years old, he is allowed a $6,000 contribution plus a $1,000 catch-up contribution.
Roth IRA Income Phase-Out Range
The Short & Sweet
For those contributing to Roth IRAs, the income phase-out for contributions has changed slightly for singles, and for those married and filing jointly.
For Single & Head of Household
Phase-outs have gone up $2,000 for singles and heads of household. The phase-out is now $122,000 to $137,000.
For Married Joint-Filers
Phase-outs have gone up $4,000 for married joint filers. The phase out is now $193,000 to $203,000.
Traditional IRA Income Phase-Out Range
The Short & Sweet
Since income limitations also apply to deductible contributions to a Traditional IRA when a taxpayer or taxpayers spouse participates in a company-sponsored retirement plan, these phase out numbers have also gone up a bit.
For Single-Filers Covered by a Company Retirement Plan
Phase-outs have gone up $1,000 for single-filers who are covered by a company retirement plan at work in 2019. The phase-out is now $64,000 to $74,000 of AGI.
For Married-Filers Covered by a Company Retirement Plan
Phase-outs have gone up $2,000 for married filers who are covered by a company retirement plan at work in 2019. The phase-out is now $103,000 to $123,000 of AGI. For a married filer who isn’t covered by a company retirement plan, but whose spouse is covered, the phase-out is $193,000 to $203,000 of AGI.
SIMPLE IRA Contribution Limits for 2019
Contribution limits for SIMPLE IRAs have gone up $500 to $13,000. Catch-up contributions for employees over 50 years old is $3,000.
SEP IRA Contribution Limits for 2019
SEP IRA contribution limits increased to $56,000 for those under 50 years old. Catch-up contributions for those over 50 years old remains at $6,000.
Solo 401(k) Contribution Limits for 2019
The Short & Sweet
Employee contribution limits for 401(k)s has gone up by $500, while total contribution limits increased by $1,000. Catch-up contributions remain the same at $6,000. No change in how profit-sharing contributions are calculated.
Example
Joe has a Solo 401(k), is 27 years old, and is the only participant of the plan. He can contribute up to $19,000 as an employee of his company. Between his employee contribution and his profit-sharing contribution, Joe’s maximum contribution to the plan for 2019 will be $56,000.
Joe’s father has a Solo 401(k), is 61 years old, and is the only participant of the plan. He can contribute up to $19,000 as an employee of his company, and an additional $6,000 catch-up contribution since he is over 50 years old. Between his employee contribution, his catch-up contribution, and his profit-sharing contribution, his maximum contribution to the plan for 2019 will be $62,000.
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