2019 Tax Update Includes Increased Retirement Contribution Limits

While it seems the changes from 2018 to 2019 will be minor, the great news is the IRS has finally increased IRA, 401(k), and other retirement account contribution limits.

 

IRA Contribution Limits

The contribution limit for Traditional and Roth IRA accounts has increased to $6,000.

The catch-up contribution limit for those age 50 and older is still $1,000.

 

401(k), 403(b), 457(b) Contribution Limits

The salary deferral limit for 401(k) and other similar plans has increased to $19,000.

The catch-up contribution limit remains the same at $6,000.

 

Single 2019 Tax Brackets

Taxable Income Tax Bracket:

$0-$9,700                        10%

$9,700-$39,475              12%

$39,475-$84,200           22%

$84,200-$160,725         24%

$160,725-$204,100       32%

$204,100-$510,300       35%

$510,300+                     37%

 

 

Married Filing Jointly 2019 Tax Brackets

Taxable Income Tax Bracket:

$0-$19,400                     10%

$19,400-$78,950           12%

$78,950-$168,400        22%

$168,400-$321,450      24%

$321,450-$408,200      32%

$408,200-$612,350      35%

$612,350+                    37%

 

Standard Deduction Amounts

After the significant increase in 2018, the cost-of-living increase for 2019 is fairly minimal:

Single or married filing separately: $12,200

Married filing jointly: $24,400

Head of household: $18,350

Additional standard deduction for people age 65 and older (or who are blind) is $1,300 for each married taxpayer or $1,650 for unmarried taxpayers.