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2019 Updates to Benefits Thumbnail

2019 Updates to Benefits

Every year, the U.S. government changes a variety of investment and benefits thresholds based on the inflation rate.  Since inflation has been pretty low, most of the changes have been modest these past ten years.  However, that changes this coming year. 

Below are the summaries for employer tax deferred plans, IRA contributions and Social Security benefits comparing 2018 to 2019 limits.

Employer Tax Deferred Plans

401(k)  or 403(b) Contributions$18,500$19,000
50 and  Over Catch Up$6,000$6,000
Overall  Limit for Defined Contribution Plans$55,000$56,000

IRA Contributions

Traditional  IRA Contribution$5,500$6,000
Roth IRA  Contribution$5,500$6,000

Income Phase Outs for Contributions in 2019:

  • Traditional IRA- $64,000 (single) or $103,000 (MFJ)
  • Roth IRA- $137,000 (single) or $203,000 (MFJ)

Social Security

Cost of Living Adjustment2.0%2.8%
Income Subject to 6.2% Social Security Tax$128,400$132,900