The IRS has released cost-of-living adjustments to pension plans and other retirement-related items for 2019. Many of the limits applicable to pension and other retirement plans have increased. For instance, the (1) elective deferral limit for employees participating in 401(k), 403(b), and most 457 plans has increased from $18,500 to $19,000; (2) limit on annual contributions to an IRA, which last increased in 2013, has increased from $5,500 to $6,000; (3) benefit limit for defined benefit plans has increased from $220,000 to $225,000; and (4) defined contribution plan limit has increased from $55,000 to $56,000. In addition, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2019. News Release IR 2018-211 and Notice 2018-83.
Arlington Heights, IL – Certified Public Accountants