Retirement Plan Contribution Limits

In 2019, the maximum regular deferral amount a taxpayer may elect to defer into his 401(k) (for-profit/private companies), 403(b) (tax-exempt organizations, hospitals, public education), 457 (state and local government)), or Thrift Savings Plan (federal government employees) is $19,000 up from $18,500 for the tax year 2018.  For employees age 50 and older, the catch-up provision is still $6,000.  The maximum deferral contribution for SIMPLE plans is $13,000 ($16,000 for employees age 50 and older), up from $12,500 ($15,500 for employees age 50 and older) for tax year 2018.  SIMPLE plan contribution limits will be $13,000 for 2019, up from $12,500 for tax year 2018.

The tax year 2019 deduction for contributions to an IRA for individuals who are not covered by another retirement plan is increased to $6,000 (from $5,500 in 2018); persons age 50 and over are allowed up to a $7,000 deduction (up from $6,500 in 2018).  Married Filing Jointly taxpayers are each allowed the $6,000 regular contribution deduction ($7,000 each for persons age 50 and over).

Effect of Modified AGI on Deduction:


Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

Serving Henderson, NC, Buncombe County, Polk County, Transylvania County


P: 828-595-2835

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