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|
|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)
|Cost of Living Adjustment||2.0%||2.8%|
|Income Subject to 6.2% Social Security Tax||$128,400||$132,900|