By Marlene Satter
The IRS has announced in Notice 2018-83 new cost-of-living adjustments that affect dollar limitations for defined contribution plans and other retirement-related items for tax year 2019.
Those contributing to 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan will be able to boost their contribution from $18,500 to $19,000.
IRA contributions, not raised since 2013, will now be $6,000, up from $5,500. However, catch-up contributions for workers age 50 and over remain the same at $1,000.
Income ranges that determine eligibility for deductible contributions to traditional IRAs, Roth IRAs and to claim the saver’s credit have all increased for 2019.